Gymboree to sell Janie and Jack to Gap, name brand to Children’s Place

Children’s clothing retailer Gymboree Group Inc. is selling its brand to The Children’s Place and its Janie and Jack clothing line to Gap Inc.

The Children’s Place will pay $76 million for the rights to Gymboree and Crazy 8 brand, and assume a contract with Zeavion Holding Co., which acquired Gymboree’s Play & Music business in 2016, according to a bankruptcy court document filed Saturday.

Gap Inc. will pay $35 million for the high-end children’s fashion line Janie and Jack and its online business and leases to its stores, as well as other assets including customer data, according to the document filed in U.S. Bankruptcy Court in Richmond, Virginia.

San Francisco-based Gymboree filed for Chapter 11 bankruptcy in January, saying it would close about 800 Gymboree and Crazy 8 stores in the U.S. and Canada. At the time, the retailer said it sought to sell the Janie and Jack business and its Gymboree online platform.

The proposed transactions must be approved by the bankruptcy court.

Gap Inc., and The Children’s Place did not immediately return request for comment.

This deal comes just three days after Gap Inc. said it would spin off Old Navy into its own company and close about 230, or half of its Gap stores over the next two years.

Gap closures: About 230 stores to close and Old Navy to be spun off into its own company

J.C. Penney: Retailer to close 24 more stores: Sales fall as department stores struggle

Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.

Source link