Gymboree Plans Store Closings Under Strategic Review
Children’s apparel retailer Gymboree Group, which emerged from bankruptcy protection this past spring, may close up to half its 900 stores under a strategic review process the company has announced. The San Francisco-based company plans to shutter all its Crazy 8 locations in 2019, and will significantly reduce the store counts of its Gymboree and Janie and Jack brands.
The review process could yield a sale or other transactions at the brand level, the company said. However, Gymboree Group said the review wasn’t guaranteed to result in a sale or other strategic alternative.
“These strategic initiatives are an important next step as we continue to look for ways to unlock additional value in our brands,” said Shaz Kahng, a turnaround specialist who was named Gymboree’s CEO in November. “We are optimistic about our future as a more streamlined organization that can deliver enhanced, long-term value to its stakeholders.”
Stifel and Berkeley Research Group are serving as Gymboree’s financial advisors. Milbank, Tweed, Hadley & McCloy LLP is serving as its legal counsel.
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