December 5, 2018 / 3:19 AM / a year ago

Gymboree explores sale of some brands, store closures

FILE PHOTO: Two children stand near a 60 percent off sale sign at a Gymboree children's clothing store as shoppers buy gifts on Christmas Eve at the Beverly Center shopping mall in Los Angeles, California December 24, 2008. REUTERS/Fred Prouser

(Reuters) - Kids’ clothing retailer Gymboree Group Inc said on Wednesday it initiated a strategic review of its brands Gymboree, Janie and Jack, and Crazy 8, which could result in the sale of some brands and closure of some stores.

Gymboree said it intends to shut its Crazy 8 store locations and cut the number of Gymboree store locations in 2019.

The company also said it appointed Shaz Kahng, who led turnarounds of retailer Lucy Activewear and various Nike business segments, as group CEO on Nov 14.

Last week Reuters reported that Gymboree was considering the closure of more than half of its approximately 900 stores.

San Francisco-based Gymboree filed for bankruptcy in June 2017. Through that process, it cut debt by $1 billion, and closed a quarter of its shops. It emerged from bankruptcy in September 2017 with debt that included an $85 million term loan and a $200 million revolving credit line.

Stifel and Berkeley Research Group are the financial advisers for the review.

Reporting by Maria Ponnezhath; Editing by Sunil Nair

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