The Gymboree Group Inc. is selling its brand to its rival The Children’s Place and its Janie and Jack clothing line to Gap Inc.
The Children’s Place will pay $76 million for the rights to Gymboree and Crazy 8 brands and assume a contract with Zeavion Holding Co., which acquired Gymboree’s Play & Music business in 2016, USA today reported.
Gap Inc. will pay $35 million for Janie and Jack, a high-end children’s clothing line along with its online business and leases to its stores along with other assets.
Gymboree filed for Chapter 11 Bankruptcy in January with plans to close as many as 900 stores under the Gymboree, Janie & Jack and Crazy 8 brands. At the time, Gymboree was looking to sell the Janie and Jack brand, which has 139 stores.
Both of these transactions must be approved by the bankruptcy court before it moves forward.
“We are excited about the potential opportunity to acquire Janie and Jack, a leader in children’s specialty retail,” said Gap Inc. said in a statement to USA Today. “We believe this transaction will provide Gap Inc., with the opportunity to expand customer base in a desirable category with a loyal brand following.”
This announcement comes just days after Gap Inc., announced it would cut ties with Old Navy, allowing it to become its own company and close about half of its Gap stores over the next two years.