Children's clothing chain Gymboree filed for Chapter 11 bankruptcy protection late Sunday, aiming to slash its debts and close hundreds of stores amid crushing pressure on retailers.
Gymboree said it plans to remain in business, hoping to regain its financial footing despite considerable challenges for physical retailers.
The company plans to close up to 450 of its 1,281 stores, according to a court filing. A list of closing stores has not been released.
The bankruptcy was widely expected after Gymboree refused to pay certain bills in recent months, placing the retailer on a collision course with creditors.
"We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today’s evolving retail landscape, with the right size store footprint and greater financial flexibility to invest in Gymboree’s long-term growth," Gymboree CEO Daniel Griesemer said in a statement.