For the second time in two years, children's clothing store Gymboree ($PRIVATE:PRIV_GYMBOREE) will file for bankruptcy. But, this time, it looks as though the bankruptcy will stick, forcing the chain to close roughly 900 stores.
Gymboree locations are primarily in major suburban areas, spread somewhat evenly throughout. In fact, the top-20 cities for Gymboree locations reads a lot like a family-friendly atlas of North America:
|
City |
Country |
Stores |
|---|---|---|
|
Las Vegas |
United States |
5 |
|
Columbia |
United States |
5 |
|
Houston |
United States |
5 |
|
Miami |
United States |
4 |
|
Springfield |
United States |
4 |
|
Richmond |
United States |
4 |
|
San Antonio |
United States |
4 |
|
San Diego |
United States |
4 |
|
Orlando |
United States |
4 |
|
Glendale |
United States |
4 |
|
Aurora |
United States |
4 |
|
Atlanta |
United States |
3 |
|
Tucson |
United States |
3 |
|
Edmonton |
Canada |
3 |
|
Columbus |
United States |
3 |
|
Spokane |
United States |
3 |
|
Plano |
United States |
3 |
|
Paramus |
United States |
3 |
|
Jackson |
United States |
3 |
|
Woodbridge |
United States |
3 |
At the high end, Gymboree locations in the affluent tech communities of Cupertino and Palo Alto, California served families with a median income of $110,000. At the low end, it served two locations in Hilalgo, Texas with a $39,000 median family income and San Juan, Puerto Rico with a $26,000 median income.
The closings come as the retail industry goes through some serious growing pains. In some cases, malls are transitioning into destinations and even office space. Some call this transition the "retail apocalypse" while others believe that those who keep up will reap serious rewards.
In the case of Gymboree, REIT Simon Property Group will be hit hardest with 77 locations throughout several malls, followed by General Growth Properties.
|
REIT |
Gymboree Locations |
|---|---|
|
Simon Property Group |
77 |
|
General Growth Properties |
56 |
|
CBL & Associates Properties |
16 |
|
Pennsylvania Real Estate Investment Trust |
8 |
|
Washington Prime |
7 |
|
Taubman Centers |
6 |
|
Retail Properties of America |
4 |
|
Pyramid Management Group |
2 |
|
Ramco-Gershenson Properties Trust |
1 |
|
Saul Centers |
1 |
So far, Gymboree has not confirmed nor denied its store closures. Word is that the company will attempt to sell of its higher-end outlet, Janie and Jack, which operates less than 200 stores in more affluent areas.
