The Gymboree Group has filed for bankruptcy and now all locations across the country, including the one at Lynnhaven Mall, will be closing.
Children’s clothing retailer, Gymboree Group, announced last week they are filing for bankruptcy and plan to close all of their Gymboree, Gymboree Outlet and Crazy 8 businesses.
“We have weathered many ups and downs over our company’s history, and today’s changing retail environment has proven to be our greatest challenge,” said Shaz Kahng, the company’s CEO, on their website.
On Jan. 16, the San Francisco-based company filed for chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia, according to a news release from the company.
However, Kahng said the business will now be focused on preserving Janie and Jack stores by selling the business to Special Situations Investing Group, Inc.
SSIG is an affiliate of Goldman Sachs & Co. and has committed to providing $30 million in new loans which will help the company during bankruptcy court proceedings.
During that time, the company will close all 900 locations of Gymboree stores.
The Gymboree Group did not immediately respond for comment as to when the Lynnhaven Mall location will be closing.