Bad news, Gymboree fans. The children’s clothing retailer appears to be preparing to file for bankruptcy.
Now is probably a good time to use any Gymboree gift cards you have around the house—better safe than sorry.
This chain is facing many of the same problems as other brick-and-mortar stores that are closing this year—it’s hard to compete with online retailers and malls are going the way of the dinosaur.
Bloomberg cited “people with knowledge of the matter” in a story that says Gymboree is preparing to file for bankruptcy in the coming weeks. The retailer faces a June 1 interest payment on its debt and wants to reorganize its debt load, which is more than $1 billion.
Last month, Gymboree said it was running short on funds and may not survive if it can’t refinance its debt. Sadly, the company hasn’t turned a profit since 2011.
There are more than 1,300 Gymboree locations nationwide.