Children’s clothing retailer Gymboree Group Inc. has filed for bankruptcy, less than a year and a half after emerging from an earlier chapter 11 filing that saw it restructure operations and launch a rebranded apparel line, Bloomberg reported. The company filed for protection with the U.S. Bankruptcy Court for the Eastern District of Virginia. The San Francisco-based company, which operates more than 900 stores under three brands in the U.S. and Canada, said it will shut its Gymboree and Crazy 8 brand stores while working with a Goldman Sachs affiliate, Special Situations Investing Group Inc., to find a bidder for its higher-end Janie and Jack business. With its latest move, Gymboree joins Sears Holdings Corp. and Toys “R” Us Inc. in the ranks of failing brick-and-mortar retailers struggling with high debt burdens that have been unable to keep customers from deserting malls and flocking to online rivals. Gymboree has also seen competition for children’s clothing intensify online. With the new filing, Gymboree Group got a commitment for debtor in possession financing, including $30 million in new money loans by SSIG and Goldman Sachs Specialty Lending Holdings.
