Gymboree, Crazy 8 in The Empire Mall to close as company files for bankruptcy
Jan. 17, 2019
Gymboree and Crazy 8 stores in The Empire Mall will close, Gymboree Group Inc. announced as it filed for bankruptcy.
The business filed for Chapter 11 bankruptcy Wednesday and plans to close all of its Gymboree and Crazy 8 locations. Details about the plans for going-out-of-business sales will be announced later, the company said in a news release.
The company is asking a bankruptcy court in Virginia for authorization to continue honoring gift cards for 30 days. GymBucks and Gymboree Rewards programs have been discontinued.
Gymboree Group is pursuing a sale of its Janie and Jack business and Gymboree’s intellectual property and online platform to Special Situations Investing Group, an affiliate of Goldman Sachs & Co.
“The company has worked diligently in recent months to explore options for Gymboree Group and its brands, and we are saddened and highly disappointed that we must move ahead with a wind-down of the Gymboree and Crazy 8 businesses,” CEO Shaz Kahng said. “At the same time, we are focused on using this process to preserve the Janie and Jack business – a strong brand that is poised to grow – by pursuing a sale of the business as a going concern. As we move ahead, we are working to minimize the impact on our employees, customers, vendors and other stakeholders.”
Earlier this week, national retailer Shopko also filed for bankruptcy and said it would close some of its stores, including two in Sioux Falls and five others across South Dakota.
