Another Retailer Closing Stores In New York

SYRACUSE, NY — The decline of retail continues to hit New York, as another retailer announced plans to shutter locations Wednesday. Gymboree, a children's clothing retailer, announced plans to close 350 Gymboree, Janie and Jack and Crazy 8 locations nationwide, including five Gymboree locations and one Janie and Jack in New York.

Closing are Gymboree locations in Scarsdale at the Vernon Hills Shopping Center, Syracuse at Destiny USA, Buffalo at Walden Galleria, Johnson City at Oakdale Mall and Saratoga Springs at Wilton Mall. The Janie and Jack location in Syracuse will close also. No Crazy 8 New York locations are slated to close.

Staying open will be the Gymborees in White Plains and West Nyack. Crazy 8s in Middletown and West Nyack will be staying open.

"Today's announcement represents the next step in the Company's court-supervised financial restructuring as we work to more strongly position the business for long-term growth and success," said Daniel Griesemer, President and CEO of Gymboree in a statement. "Right-sizing our store footprint is a central part of our efforts to ensure Gymboree emerges from this restructuring process as a stronger and more competitive organization, with greater financial flexibility to invest in our future.

In June, Gymboree elected to file for Chapter 11 bankruptcy to restructure and reduce debt by $900 million.

"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," said Griesemer. "I am deeply grateful to our team, their exceptional ongoing dedication and their focus on continuing to put our customers at the center of all we do.”

Nineteen retailers that have stores in The Empire State are on the verge of bankruptcy and could be subject to closure, including J. Crew, Kmart, Neiman Marcus, Nine West, Sears, Tom's Shoes and Tops.

A recent Moody's Investors Service report detailed that Gymboree was among 22 national retailers with a debt rating of Caa or lower, and were on the verge of bankruptcy. Moody's stated that special groups of retailers continue to deteriorate, such as department stores and specialty retailers.

"The majority of retailers remain fundamentally healthy," Moody's Lead Retail Analyst Charlie O'Shea said in a press release. "But as select groups of retailers continue to deteriorate — in particular department stores and specialty retailers — we believe the distressed ranks will keep growing, fueled in part by distinct vulnerabilities."

Image via Shutterstock