Report: Children’s apparel retailer preparing bankruptcy filing

Gymboree Corp.’s debt and mounting losses may have finally caught up with it.



The embattled retailer is preparing to file for Chapter 11 bankruptcy protection, Bloomberg reported, as it faces a June 1 interest payment on its debt.



Gymboree has more than $1 billion in debt resulting from its Bain Capital buyout in 2010. It warned in March that it was running short on cash.



The retailer, which operates some 1,300 stores, has posted losses for the last several years amid increased competition from online and discounters. In its most recently completed second quarter, the company posted a 5% decline in same-store sales. Net sales declined to $356.8 million from $381.4 million in the year-ago period.



In January, Mark Breitbard, who has served as CEO of Gymboree since 2013, announced he was stepping down. In March, he was appointed president and CEO of Banana Republic.