Gymboree to file for bankruptcy, close 900 stores: Report

Fox Business Briefs: Children's clothing retailer Gymboree expected to file for a second bankruptcy in two years with plans to close all 900 of its stores; Taco Bell announces it will test a dedicated vegetarian menu with new items later this year.

Children’s clothing retailer Gymboree will file for bankruptcy for the second time in two years, according to a report.

The brand is expected to liquidate all of its remaining 900 stores, the Wall Street Journal reported, citing sources familiar with the matter. The decision came weeks after the company said it had begun a strategic review of Gymboree, Janie and Jack and Crazy 8, the three brands it operates, with an eye toward a potential sale.

Company officials have yet to determine a course of action for the Janie and Jack brand, according to the report. Without a buyer, the brand’s stores could also liquidate.

Gymboree did not immediately respond to a request for further comment.

Gymboree first filed for bankruptcy protection in July 2017, in a move company CEO Daniel Griesemer said was meant to achieve “greater financial flexibility.” The company closed 350 stores and shed $900 million in debt during the proceedings, while also granting control to its lenders.

Like many traditional retailers, Gymboree has struggled to maintain store traffic and sales amid the rise of e-commerce competitors. Former industry giants such as Sports Authority and Toys R Us have filed for bankruptcy and gone out of business in recent years.

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Another former industry leader, Sears Holding Corp., will hold an auction this week that will determine whether it will sell its remaining stores or liquidate.