Children’s clothing retailer Gymboree Group Inc. is expected to seek bankruptcy protection this week, with plans to close all 900 of its stores, the Wall Street Journal reported. The expected bankruptcy comes less than two years after the retailer’s first stint in bankruptcy court, when it closed a portion of its stores and saw lenders take control of the business. The stores operate under the banners Gymboree, Janie and Jack and Crazy 8. In December, Gymboree announced it began a strategic review of the three brands, which could result in a sale or other transactions at the brand level. While Gymboree is expected to liquidate, the fate of Janie and Jack stores is still up in the air. If no buyer can be found, the chain could also be liquidated. Gymboree first filed for bankruptcy protection in June 2017, weighed down by more than $1 billion in debt stemming from a leveraged buyout by Bain Capital Private Equity LP in 2010. The company was able to slash $900 million in debt from its balance sheet and turned over control to its lenders, including Carriage House Capital Advisors LLC, Brigade Capital Management LP and Oppenheimer Funds Inc.
