Children’s Place and Gap to buy parts of failed Gymboree
Bankrupt children’s clothing retailer Gymboree is set to sell its primary brand to competitor Children’s Place, while its high-end children’s clothing label Janie and Jack will be sold to Gap Inc.
While both deals must yet be approved by the bankruptcy court, this will undoubtedly be a formality.
Gymboree filed for bankruptcy protection in January, for the second time in two years. Under protection from its creditors, the company planned to close 800 stores trading under its primary name and as Crazy 8.
According to documents filed with the court, Children’s Place will pay US$76 million for the Gymboree and Crazy 8 brands and take over the contract with Singapore’s Zeavion which bought Gymboree’s independently operated Play & Music business in 2016.
Gap says it will pay $35 million for Janie and Jack’s intellectual property, its website, customer data and other assets. In a separate transaction, the company will buy Janie and Jack’s inventory from a liquidation company.