Gymboree Files for Bankruptcy

Gymboree (San Francisco) filed for Chapter 11 bankruptcy protection this week with plans to close 375 to 450 of its 1281 brick-and-mortar stores, though it has not detailed when those stores will close or which locations will be affected.

The retailer is hoping that the bankruptcy will also allow it to reduce its $1.4 billion debt by $1 billion and has reportedly acquired a deal with some secured lenders to restructure its debt.

The company’s Chief Executive Officer Daniel Griesemer said, "We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today’s evolving retail landscape, with the right size store footprint and greater financial flexibility to invest in Gymboree’s long-term growth."

According to USA Today, many had anticipated the bankruptcy filing after the company recently began refusing to pay certain bills.