Gymboree will file for bankruptcy once again, which could force it to shutter the doors of most of its stores, while also pushing it to sell at least one of its brands.
The children’s apparel retailer is expected to file for bankruptcy protection as soon as later this week, which would make it the company’s second bankruptcy filing in under two years, according to a person familiar with the matter who shared the matter with CNBC.
The bankruptcy process could be a tough one for Gymboree that may cause it to close the nearly 900 stores it operates under the Gymboree brand name, as well as stores it runs under its Crazy 8 brand and its high-end Janie and Jack stores. The company is hoping to sell the latter brand, which could go a long way towards saving that brand and its footprint in the U.S., which includes roughly 139 stores.
The company had previously filed for bankruptcy in June 2017 as it was dealing with north of $1 billion in debt that year, which was left over from a leveraged buyout carried out by Bain Capital Partners in 2010. Gymboree had more than 1,280 stores back then.
It is unclear whether or not the company plans on selling any of its other brands or how quickly it will have to shutter the doors of its stores after filing for chapter 11.