Children's clothing chain Gymboree announced on Monday that it has filed for Chapter 11 bankruptcy protection, as the number of retail bankruptcies continues to mount in 2017.
The move comes as no surprise after the company missed its June 1 debt payment and partnered with turnaround firm AlixPartners to assist with operations.
The retailer also plans to close 375 to 450 of its 1,281 stores, according to a court filing, likely putting a portion of its 11,000-person workforce at risk.
"The steps we are taking today allow the Company to definitively address its debt and enable the management team to turn its full focus toward executing our key strategies, including our Product, Brand and Omni-channel initiatives," CEO Daniel Griesemer said in a statement. "We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today's evolving retail landscape."
The company also announced on Monday that Chief Financial Officer Andrew North would be leaving for personal reasons, to be replaced by Liyuan Woo, a director at AlixPartners.
Nine retailers filed bankruptcy in Q1 alone this year, which matches the total number of retail bankruptcies in 2016.