US-based kids clothing retailer Gymboree is reportedly going to join the list of those retailers who have recently filed for bankruptcy. The move is expected as Bain Capital-controlled faces a June 1 interest payment on its debt more than one billion dollars from its buyout with Bain Capital in 2010.
The move, if it happens, is a setback for the retailer who reported positive Q1 in 2016. The kid’s clothing retailer also reported slight increase in sales up 6 per cent from 4 per cent.
However, the company is yet to make any official announcement on reported development.
The retailer with 1,300 stores in its portfolio is yet to notice annual profit since 2011, equating to a loss of more than US $ 800 million.
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Gymboree’s US $ 761 million term loan is due in February 2018 and is currently trading at approximately 44 cents on a dollar—a 36 cent decline since late September.
The retailer has been hit hard due to decline in mall shopping and the rise of online competitors like Amazon.com, makes competition even tougher for them.
