Tough times continue in the retail industry as children’s clothier Gymboree announced it will close 350 locations, including three stores in the Kansas City area, as part of its bankruptcy proceedings.
A Gymboree store at Independence Center mall will close, as well as another Gymboree and a Crazy 8 store in Zona Rosa, according to a bankruptcy filing posted on Tuesday. Crazy 8 is a brand under the Gymboree Corp.
Gymboree on June 11 filed for bankruptcy, a move that the San Francisco retailer described as a way to reduce its debt by $900 million. The company is not liquidating its business, but rather restructuring its finances.
Gymboree said in a court filing that it will start closing stores later this month with most of the affected locations closing their doors by the end of September; some will stay open through January.
The company will be holding closing sales at the locations it plans to shutter; Gymboree expects to make between $65 million and $85 million from those sales, according to court filings.
“Right-sizing our store footprint is a central part of our efforts to ensure Gymboree emerges from this restructuring process as a stronger and more competitive organization, with greater financial flexibility to invest in our future,” said Gymboree president and chief executive Daniel Griesemer in a written statement.
Gymboree is closing seven other locations in Missouri, including ones in Cape Girardeau, Joplin, St. Peters, Chesterfield and Lake St. Louis. It is closing two locations in Kansas, in Topeka and Manhattan.