Gymboree, the U.S. children’s clothing chain that emerged from bankruptcy less than 18 months ago, is within days of filing for chapter 11 protection once again, the Financial Times reported. Record-breaking holiday sales that have helped much of the U.S. retail industry have failed to revive the fortunes of the company, which operates about 900 stores across North America. Gymboree, which was bought by private equity group Bain Capital for $1.8 billion in 2010, is one of several retailers that has run into trouble after being laden with debt in a leveraged buyout. The company had used its earlier bankruptcy to shed more than $900 million of debt. Daniel Griesemer, former chief executive, said at the time of the restructuring that it would secure “the company’s long-term financial health.” But trading has continued to be tough for the company, one of the people familiar with the matter said. The San Francisco-based group said last month that it had begun to review “strategic options” for its Gymboree, Crazy 8 and Janie and Jack brands.
