Jan 17 (Reuters) – Youngsters’s clothes retailer Gymboree Group Inc filed for Chapter 11 chapter safety, the second time in nearly two years, and mentioned on Wednesday it’ll shut greater than 800 Gymboree and Loopy eight shops.
The San Francisco-based firm mentioned it’ll additionally promote its high-end line, Janie and Jack, in addition to its mental property and on-line platform.
The corporate’s Canadian arm, Gymboree Inc, additionally intends to hunt chapter safety, it mentioned.
Gymboree is the second U.S. retailer to file for chapter on Wednesday. Earlier, Shopko Shops, a common merchandise retailer operator, filed a voluntary petition in Nebraska.
Greater than 20 U.S. retailers, together with Sears Holdings Corp and Toys R US, filed for chapter because the begin of 2017, succumbing to the onslaught of fierce e-commerce competitors from firms like Amazon Inc.
Gymboree, which began making youngsters’s clothes greater than 30 years in the past, operates about 540 Gymboree shops and retailers in the USA and Canada. It additionally has about 265 shops throughout the USA beneath the ‘Loopy eight’ model and 139 retailers beneath ‘Janie and Jack’.
Gymboree Group listed belongings within the vary of $100 million to $500 million and liabilities of $50 million to $100 million, its courtroom submitting confirmed.
Gymboree earlier filed for chapter safety in June 2017 and was one of many few brick-and-mortar retailers that managed to flee liquidation in a wave of bankruptcies that swept the sector.
The corporate mentioned it signed an asset buy cope with Particular Conditions Investing Group Inc (SSIG), an affiliate of Goldman Sachs & Co LLC, and SSIG will function the so-called “stalking-horse” bidder within the sale of Janie and Jack.
Gymboree has obtained a dedication for $30 million debtor-in-possession financing from Goldman Sachs Specialty Lending Holdings Inc and SSIG.
Gymboree, together with all its U.S. subsidiaries, filed the petition within the U.S. Chapter Courtroom for the Jap District of Virginia, it mentioned. Its Canadian arm additionally intends to hunt chapter safety within the Ontario Superior Courtroom of Justice.