Jan. 17 (UPI) -- High-end children's clothing brand Gymboree will file for Chapter 11 bankruptcy protection and close more than 800 U.S. and Canadian stores, the company said Thursday.
All Gymboree and Crazy 8 locations will close and Janie and Jack will be sold to Special Situations Investing Group, part of Goldman Sachs. Newly appointed CEO Shaz Kahng said the Janie and Jack business continues to be a strong brand that is poised to grow.
"We are saddened and highly disappointed that we must move ahead with a wind-down of the Gymboree and Crazy 8 businesses," Kahng said in a statement. "As we move ahead, we are working to minimize the impact to our employees, customers, vendors and other stakeholders. At the same time, we are using this process to preserve the Janie and Jack business."
The online websites for Gymboree, Janie and Jack and Crazy 8 will remain open.
Thursday marks the second time Gymboree has filed for bankruptcy in the past two years. Gymboree will also seek protection in Canada.