Gymboree seeking debt relief for the second time in two years

Louisiana parents who go to malls to buy their children’s clothing are likely familiar with the Gymboree brands. The parent company owns Janie and Jack as well as Crazy 8 but has fallen under serious financial strain as it tries to compete with online shopping venues. The company recently announced that it will be filing for debt relief for the second time in the past two years.

A Gymboree spokesman noted that other stores, such as Gap and The Children’s Place, have been selling lower-cost clothing, which has had negative consequences for the company. In 2017, the company filed for bankruptcy and shut down 350 stores. It continued downsized operations in this state and many others across the country.

Financial crises are often temporary, and this situation shows that options may be exercised more than once provided the business in question meets all eligibility requirements applicable to its circumstances. Gymboree’s initial bankruptcy filing allowed it to eliminate $900 million dollars worth of debt. The company now plans on liquidating its remaining stores, which will hopefully allow its high-end Janie and Jack brand to remain intact.

Louisiana business owners facing financial problems may have debt relief options they are not aware of, which is why it is always best to discuss such issues with someone well-versed in the bankruptcy laws of this state. An experienced attorney can provide guidance and support to help devise a plan that best fits a company’s particular financial needs. Such plans are often means to wipe the slate clean and start afresh, which for many business owners, ultimately leads to restored financial stability and renewed profits.