Could Gymboree Stores Be the Next to Close in NJ?
The bad news keeps coming for New Jersey retail as it appears Gymboree could be the next large chain of stores in trouble.
After it was announced that stores like Macy's, JC Penney, and Payless could close, Bloomberg reported the popular children's chain store could be filing for bankruptcy as it faces a sizable debt payment.
With less than two months until the June 1 payment is due, Bloomberg said there are big questions about how the company will handle its more than $1 billion debt. With more than 1,300 stores across the country, the Bloomberg report said the chain is struggling to compete against larger stores that carry more than just children's clothing.
The news of the potential bankruptcy comes eight months after Gymboree sold its Play and Music arm. In its second quarter report, the company said sales were down 5 percent from the fourth quarter of 2015. The company also lost more than $300 million in the second quarter alone, according to the report.
The Gymboree corporation includes the namesake brand, as well as the Gymboree Outlet, and the children's brands Janie and Jack, and Crazy 8.