Children’s clothing retailer Gymboree has filed for Chapter 11 bankruptcy protection and plans to close between 375 and 450 stores, writes Forbes.
The store has been struggling to get out from under $1.4 billion in debt; by filing for bankruptcy, they hope to shed $900 million of it. That includes closing stores.
Even after acquiring $308.5 million in financing, the company is expected to close between 375 and 450 stores, running the rest of its stores as usual. The company points out that “a majority” of stores will remain open.
Gymboree, based in San Francisco, reported a loss of $325 million last quarter. It’s the latest in a torrent of big American retailers falling to the changing spending habits of Americans, who are increasingly shopping online or not at all.
In a statement to customers reported by Forbes, Gymboree was candid about the coming steps.
“You have likely read about and even experienced first-hand other companies that have continued to serve their customers while going through this process, ultimately thriving over the long term as a result,” it said.