Business & Tech

It's Official: Gymboree Closing All 22 NJ Stores

Here's what this means for shoppers of the popular store, located in various malls and shopping centers throughout New Jersey.

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It's official: A popular clothing retailer has filed for bankruptcy protection, an action that will close 22 stores in New Jersey.

The Gymboree Group filed for Chapter 11 bankruptcy as expected Wednesday. Under the bankruptcy plan, the retail chain would close more than 800 Gymboree and Crazy 8 stores. The company is working to save its 140 upscale Janie and Jack stores (see the list of stores below).

The decision was made after a number of retailers have announced closings in New Jersey. Read more: Retailers You Won't Be Seeing In New Jersey In 2019

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In its bankruptcy filing, the Gymboree Group asked the court to allow it to continue honoring gift certificates to all of its store brands for 30 days, but it immediately ended its GymBucks and Gymboree Rewards programs, Business Insider reported.

The stores could close as early as this week, according to reports.

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In addition to seeking a buyer for its Janie and Jack stores, the Gymboree Group wants to sell its intellectual property and online platform. Gymboree Play & Music, which offers developmental play music and art classes for young children and separated from the Gymboree Group in 2016 to become a standalone company, isn’t affected by the bankruptcy filing.

Though “highly disappointed” that it must close its Gymboree and Crazy 8 stores, Gymboree Group CEO Shaz Kahng said in a statement that “we are focused on using this process to preserve the Janie and Jack business — a strong brand that is poised to grow — by pursuing the 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,” he said.

Like many brick-and-mortar stores, Gymboree has struggled to remain afloat against increased online competition.

The company first filed for bankruptcy in July 2017 and closed 350 stores. At the time, the company said in a statement that closing those stores would allow the company to “continue to deliver quality merchandise and superior service to our customers.”

That action allowed the company to shed millions in debt.

Here are the New Jersey stores and their locations:

With reporting by Kara Seymour

Photo: Renee Schiavone / Patch

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