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September 18, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Gymboree files for bankruptcy again, will close all Gymboree and Crazy 8 brands

The children’s clothing brand Gymboree Group Inc. has filed chapter 11 bankruptcy for the second time in less than two years. The San Fransisco company said it shut down its Gymboree and Crazy 8 brands.

Gymboree has locations in The Westchester mall in White Plains, Woodbury Common Premium Outlets in Central Valley and at Palisades Center in West Nyack. There are more than 800 locations for Gymboree and Crazy 8 in the U.S. and Canada.

The company announced the move Jan. 16. Gymboree Group will try to sell its high-end Janie and Jack business, as well as Gymboree’s intellectual property and online platform.

There is a Janie and Jack store in The Westchester and Danbury Fair Mall in Danbury. The brand includes 139 locations total in the U.S. and Canada

When Gymboree last filed for bankruptcy protection in 2017, the retailer closed 400 stores, including in Scarsdale and Greenwich. Lenders took control of the business.

Shaz Kahng, appointed in November as Gymboree Group CEO, said the company “has worked diligently in recent months to explore options for Gymboree Group and its brands, and we are saddened and highly disappointed that we must move ahead with a wind down of the Gymboree and Crazy 8 businesses. At the same time, we are focused on using this process to preserve the Janie and Jack business – a strong brand that is poised to grow.”

The company announced it has an asset purchase agreement with Special Situations Investing Group Inc., a  Goldman Sachs & Co. affiliate, for the sale process. SSIG will serve as the stalking-horse bidder in a court-supervised auction for the Janie and Jack business. Gymboree Group said it has a commitment for $30 million in debtor-in-possession financing from SSIG and Goldman Sachs Specialty Lending Holdings Inc.

The company filed for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia. Gymboree Group also said it will file for bankruptcy protection in Canada for its Canadian operations.