Gymboree is expected to file for bankruptcy protection as early as this week, a person familiar with the matter told CNBC. The company expects to close most of its 900 stores as part of the process, but is seeking to sell off the 139 Janie and Jack locations.
Gymboree already had been planning to shutter its 265 Crazy 8 locations and some of its 380 Gymboree stores in 2019 as part of a strategic review. At the time, the retailer noted that the review could ultimately include a sale or other transactions at the brand level.
If the bankruptcy takes place, it will be Gymboree’s second filing in two years. The retailer spent four months in a liquidation process that ended in October 2017, eliminating more than $900 million of debt and closing 330 stores.