WASHINGTON (dpa-AFX) - Struggling kids apparel retailer Gymboree has filed for bankruptcy protection.
Gymboree was expected to file for bankruptcy protection as it continues to struggle to return to profit and had recently failed to pay its interest payment due on debt notes.
Gymboree expects to remain in business but plans to close 375 to 450 of its 1,281 stores in filing for a Chapter 11 bankruptcy reorganization.
The bankruptcy was widely expected after Gymboree refused to pay some of its bills in recent months, placing the retailer on a collision course with creditors. The retailer said in its filing late Sunday that it hopes to slash $1 billion of its $1.4 billion in debt and to win approval for its plan by Sept. 24.
Gymboree's Chief Financial Officer Andrew North also announced his resignation citing personal reasons.
'The steps we are taking today allow the Company to definitively address its debt and enable the management team to turn its full focus toward executing our key strategies, including our Product, Brand and Omni-channel initiatives,' CEO Daniel Griesemer said in a statement. 'We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today's evolving retail landscape.'
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