Another retailer may be biting the dust soon.
There are talks of children’s clothing retailer Gymboree filing for bankruptcy as soon as June 1 of this year.
While there’s no official comment from the company at this time, Gymboree has not posted a profit since 2011 and has had reported financial losses of over $800 million total. The company is also $1 billion in debt from its 2010 Bain buyout and may not be able to make its June interest payment.
To help its situation, Gymboree is hoping to restructure some of its debt with the possibility of transferring control to its lenders, which include Searchlight Capital, Brigade Capital Management and Oppenheimer Holdings.
It appears that Gymboree has fallen victim to the same issue that many other retailers have been facing. The decreased foot traffic in malls has impacted retail brick-and-mortar locations’ profits. Following the reports of Gymboree’s potential bankruptcy filing, stocks for its competitors began to rise.
With this possible filing and the impending $761 million term loan due in February 2018, it’s likely that we will see a major change coming for Gymboree.