Gymboree to close 350 stores, five in Louisiana

July 13, 2017 | Updated: 5:29 p.m., July 13, 2017

The children's clothing retailer said it has reached an agreement with its lenders that will allow it to stay in business as it attempts to restructure. It has arranged to borrow an additional $35 million to finance operations during the restructuring. The company's announcement did not include any plans for store closings.

NEW YORK — Your favorite kids clothing store may be closing up shop soon.

Gymboree, which filed for bankruptcy protection in June, will shutter roughly 350 outlets across the U.S., the company announced Tuesday.

Five Gymboree locations are closing in Louisiana: Esplanade Mall in Kenner, Mall of Louisiana in Baton Rouge, Mall Saint Vincent in Shreveport, Tanger Outlet in Gonzales, and the Louisiana Boardwalk Outlet in Bossier City.

“This was a difficult decision to make, but we are confident that it is in the best long-term interest of our Company, our customers and our broader employee base,” CEO Daniel Griesemer said in a statement.

Gymboree files for bankruptcy, store closures possible

Affected stores will launch their closing sales next week, the company said.

As of April, the San Francisco-based company operated about 1,280 locations. It also owns the Janie and Jack and Crazy 8 brands, and has more than 11,000 employees, according to a filing. Most of the store closings will be Gymboree and Crazy 8 locations.

Gymboree isn’t the only retailer to cut its brick-and-mortar footprint as online shopping booms.

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So far this year, 5,300 store closings have been announced, according to Fung Global Retail & Technology, a retail think tank.

Payless ShoeSource immediately closed nearly 400 stores when it filed for Chapter 11 bankruptcy in April. Radioshack and Rue21, which also filed for bankruptcy this year, have closed hundreds more, while The Limited decided to nix physical storefronts altogether.

Even the biggest players are at risk.

Sears Holdings has said it plans to shut down more than 250 stores this year — about 20% of its locations.