Gymboree could be closing half of its 900 stores a year after emerging from bankruptcy, when it was one of the few retailers managing to escape liquidation in that scenario as ecommerce continues to eat away at brick-and-mortar chains.
The infant and children’s apparel company has hired consulting firm Berkley Research Group LLC as it explores its options, including a second bankruptcy filing as well as store closures. The firm is helping Gymboree analyze its mall-based leases.
Gymboree filed for bankruptcy in June 2017 cutting its debt by $1 billion and closing a quarter of its stores. It emerged from bankruptcy two months later with an $85 million term loan and a $200 million revolving credit line.
This news comes shortly after Destination Maternity announced it would be closing 280 stores by 2022 and David’s Bridal filed for bankruptcy, but will keep stores open. More than 20 retailers have filed for bankruptcy protection just since the beginning of 2017, according to Reuters.
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