The Gymboree Corporation has announced that it has agreed in principle to sell of its Zutopia stores division to The Wet Seal Inc.

The deal to sell the young girls clothing division is subject to the completion of a definitive agreement on certain conditions being met, including the transfer of the leases to Wet Seal Inc. If all goes to plan then the transfer should take place by April 7, 2001.

Stuart Moldaw, Gymboree's chairman and chief executive officer, said: "As we focus on building shareholder value and expanding our core Gymboree brand, we determined that Zutopia would be best served under new stewardship. We believe the concept makes sense in the marketplace, and that Wet Seal's expertise in the women's and girls' markets aligns exactly with the Zutopia concept."