Gymboree May Be Filing for Bankruptcy Soon

According to a source familiar with the situation who spoke to CNBC under anonymity, children clothing store company Gymboree Group may be filing for bankruptcy soon.

The source said the company is filing for bankruptcy as early as this week and could close many of its 900 stores.

The Wall Street Journal was the first to break the news about the company’s bankruptcy plans.

If it happens, it would be the second bankruptcy filing for the company in less than two years. The last time the company filed was in 2017 when it had over $1 billion in debt. It was then that Gymboree closed 380 of its 1,280 stores in a move to restructure the company and exit Chapter 11 bankruptcy.

Gymboree Group operates under the names Gymboree, Crazy 8, and Janie and Jack. The latter the company may try to sell according to the source. Selling Janie and Jack could save that brand and around 139 stores that it has.

If a bankruptcy happens, Gymboree Play and Music will not be affected. This is the children’s classes division of Gymboree that has operated as a separate entity owned by Gymboree Global Education Group since 2016.