Many local shopping malls are going to have to grapple with the loss of one more retailer: Gymboree.
The San Francisco-based children's clothing chain is closing nearly a fourth, or 350, of its stores nationwide, including four Gymboree stores in the Twin Cities — at Southdale Center, Burnsville Center, Eden Prairie Center and the Shoppes at Arbor Lakes in Maple Grove. The company is also closing two Crazy 8 stores at Burnsville Center and in Woodbury.
Outside the metro area, Gymboree is closing stores in Mankato and Medford, Minn.
The closing sales are expected to begin Tuesday.
Gymboree, which filed for bankruptcy protection last month, is one of the latest casualties of massive disruption sweeping across retail as a number of brands are struggling with large debt loads as well as lower mall traffic and the shift to online shopping. Other chains that have recently filed for bankruptcy include Payless ShoeSource, Aeropostale, PacSun, Gordmans, Rue21, BCBG, Wet Seal, the Limited and True Religion. Others that are on analysts' watch lists of who could be next include Claire's and J. Crew.
The latest development with Gymboree means that many area shopping malls, which already have a number of recently vacated storefronts because of these other bankruptcies, will soon have another space or two to fill.
But Gymboree's troubles could provide an opening for other retailers such as Minneapolis-based Target Corp., which has been stepping up its efforts in children's clothing with the launch last year of its Cat & Jack brand. Target CEO Brian Cornell has said other retail bankruptcies could leave up to $60 billion in sales up for grabs.
Gymboree, which was saddled in debt from a leveraged buyout by Bain Capital in 2010, is working to restructure its business.
