Gymboree launches strategic review, plans closure of Crazy 8 brick-and-mortar chain
San Francisco-based childrenswear retail company Gymboree Group, Inc. announced on Wednesday that it is explorin options for its brands, including plans to shutter all Crazy 8 stores and significantly reduce the retail footprint of its namesake Gymboree label in 2019.
Along with the closures, the company stated that it will be undertaking a comprehensive strategic review of its brand portfolio, which also includes Janie and Jack, a process which could lead to the sale of one or more of Gymboree Group’s retail banners.
The company has also announced the appointment of Shaz Kahng as its new CEO, effective November 14, 2018.
Kahng brings 30 years of experience in retail to her new position, having previously led the successful turnarounds of Lucy Activewear and a number of Nike business segments. She has already been working with Gymboree for the last year, helping implement strategies aiming to revive the company’s businesses.
“The process we announced today is designed to reposition the Company for success by establishing a brand portfolio and store footprint that is optimized for the current retail environment,” said Kahng in a release.
“These strategic initiatives are an important next step as we continue to look for ways to unlock additional value in our brands. We are optimistic about our future as a more streamlined organization that can deliver enhanced, long-term value to its stakeholders.”
As of yet, Gymboree cannot guarantee that the strategic review will result in a sale or transaction, and the company has not provided a timetable for completion of the process.
The group’s stores across the US, Canada and Puerto Rico will continue to operate as normal through the holiday season.
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