Gymboree to close UK stores
Childrens retailer facing mounting losses
Children retailer Gymboree is to close its stores in the UK and Ireland as part of a drive to tackle mounting losses.
The US based retail group, which operates the Gymboree, Janie and Jack, and Janeville chains, has reported a loss of $3.2m for the three months to July 31, compared to a $1.1m loss in the same period a year ago. Net sales rose 9 per cent to $119.8m, with same store sales up 2 per cent.
The company said its board has voted to close the UK and Ireland retail operations because of their of their continued poor financial performance. Gymboree operates 17 stores in the UK and five in Ireland, located in upmarket retail locations including the Bluewater and Cribbs Causeway shopping centres.
Lisa Harper, Gymboree Corporation chairman and chief executive officer, said: “The closure of our UK and Ireland retail operations was the right decision to make. It will allow us to focus our attention and financial resources on the key drivers of our long-term growth strategy. We truly appreciate the extraordinary group of employees in the UK and Ireland who have been dedicated to the Gymboree brand over the years.”
The company said it will begin to wind down of the UK and Ireland retail operations immediately and expects the process to be substantially complete by the end of current quarter, which runs to the end of October. It expects the closures to help the company into a modest profit in the third and fourth quarters of the current financial year.
Gymboree expects costs related to the closure of around $9.5m, including lease disposition, asset write-offs and severances. Gymboree Play & Music franchises, which operate classes for parents and children, will continue to operate in the UK and Ireland.
