Gymboree could file for bankruptcy protection as early as this week, according to CNBC, the company’s second filing in less than two years.
CNBC reported that Gymboree is expected to close 900 stores under the Gymboree, Janie & Jack and Crazy 8 brands. The company is also looking to sell the Janie & Jack brand, which has 139 stores.
“Gymboree is the latest retailer to succumb to the market’s disruptive environment,” said John Nash, Chief Marketing and Strategy Officer for RedPoint Global. “If there is one lesson to glean from Gymboree filing for bankruptcy it is that understanding individual customers is key to succeed in today’s business. This means prioritizing the customer experience and reaching them with meaningful, relevant messages.”
Nash said the modern customer has upended traditional interactions between brands and consumers. They want to be personally recognized across channels and devices recieving offers that are relevant in their moment of need. To succeed in this new environment, brands and retailers must provide a consistent and seamless experience across all possible channels of engagement – informed by context and past interactions.
“Contextually relevant interactions, at the moment of engagement, are the key to maximizing revenue and customer satisfaction,” said Nash. “However, keeping up with a customer’s pace and understanding what messages to provide requires a single customer view in a way that is accessible in real-time. Brands often lack this unified customer needed to be effective. Those brands that unify digital and physical touchpoints and their underlying data have the deep customer insights necessary to provide the relevant messaging the connected customer wants in real-time.”
Nash said the shift in power dynamic is forcing retailers to change how they operate. Knowing what customers want and reaching them anywhere in their path to purchase is critical to thrive in today’s market. Those leaders that deliver dynamic, personalized, omnichannel experiences can close the gap against the ever increasing consumer interactions.
The company filed for Chapter 11 bankruptcy protection in 2017 while still keeping a majority of its stores open during the restructuring process. At the time Gymboree cut its debt by $1 billion and closed 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.