Gymboree Stores to Close Amid Bankruptcy

Posted: Updated:
(photo courtesy of Azadea Holding Group) (photo courtesy of Azadea Holding Group)
SAN FRANCISCO -

San Francisco-based Gymboree Group Inc. and its U.S. subsidiaries have filed for Chapter 11 bankruptcy protection. As a result, the company says it plans to close all of its Gymboree and Crazy 8 stores throughout the country, including nine in Indiana. 

Additionally, Gymboree Group says it will continue to pursue the sale of its Janie and Jack brand, as well as the intellectual property and online platform for Gymboree. In a news release issued this week, the company says Special Situations Investing Group Inc., an affiliate of Goldman Sachs & Co. LLC, has agreed to acquire those assets in an auction that will take place by the end of February.

"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," said Shaz Kahng, chief executive officer of Gymboree Group. "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 – by pursuing a sale of the business as a going concern. As we move ahead, we are working to minimize the impact on our employees, customers, vendors and other stakeholders."

Gymboree Group did not reveal a timeline for the closure of its Gymboree and Crazy 8 stores. The Indiana locations that will be affected by the move include:

Gymboree:

  • Tippecanoe Mall - Lafayette
  • Clay Terrace - Carmel
  • The Fashion Mall at Keystone - Indianapolis
  • Hamilton Town Center - Noblesville
  • Edinburgh Premium Outlets - Edinburgh

Crazy 8:

  • Castleton Square Mall - Indianapolis
  • Greenwood Park Mall - Greenwood
  • Tippecanoe Mall - Lafayette
  • Hamilton Town Center - Noblesville

The company made the filing in the U.S. Bankruptcy Court for the Eastern District for Virginia. Gymboree Group says it has received a commitment for $30 million in financing from SSIG and Goldman Sachs Specialty Lending Holdings Inc. which, if approved by the court, will support the company's operations during the bankruptcy proceedings.

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