The fate of bankrupt retailer Gymboree’s brands has been determined: The Children’s Place will acquire the rights to both Crazy 8 and Gymboree itself for $76 million, according to court documents. Additionally, Gap will acquire Janie and Jack’s intellectual property, web site, customer data and other assets for $35 million. The transactions must still be approved by the bankruptcy court.
Gap plans to acquire Janie and Jack’s inventory from a liquidation company in a separate deal. Gap will also take over the contract with Singapore-based Zeavion Holding, which owns the independent Gymboree Play & Music business.
While the deals mean Janie and Jack’s 139 locations will live on, Gymboree still plans to close all Gymboree and Crazy 8 stores. The high-end Janie & Jack outlets have been outperforming the retailer’s other banners, leading Gymboree to seek their sale rather than close them during the bankruptcy process.
This deal marks the second major business transaction for Gap in the past week, following the retailer’s decision to spin off Old Navy as its own company. Janie and Jack’s will likely join Gap under the yet-to-be-named banner “NewCo,” which also will house Athleta, Banana Republic, Intermix and Hill City.