Gymboree's bankruptcy means closing 350 stores
SAN FRANCISCO - Children's clothing seller Gymboree is closing 350 stores as its works to restructure in Chapter 11 bankruptcy, which it filed for in June.
The San Francisco-based company said Tuesday that it's mostly closing Gymboree and Crazy 8 stores. It also operates Janie and Jack stores. The company will have more than 900 locations after the stores are shut down.
Gymboree filed for bankruptcy protection in June. Traditional retailers have been struggling to deal with strong competition from online companies and slowing mall traffic.
The closing sales at affected stores are scheduled to begin next Tuesday. In a statement posted on its website, the company said during the restructuring process it will continue normal operations, including making payments to vendors and providing wages to employees.
"The Gymboree management team is confident that this financial restructuring is the best path forward for all of the Company's stakeholders," the statement said. "Gymboree expects to move through this process as quickly and efficiently as possible and emerge as a stronger organization that is better positioned to grow and thrive in today's evolving retail landscape."