Gymboree, the US-based children's apparel retailer, has announced it is to close 350 of its Gymboree and Crazy 8 brand stores as part of a restructure aimed at boosting profitability.

The firm is undergoing a court-supervised financial restructuring following its filing for bankruptcy last month.

Gymboree files for bankruptcy amid restructuring agreement

It now says it intends to close 350 stores, and that with the right size store base it will be able to focus resources on locations with the greatest potential and improve the profitability of the overall business.

At the end of April it operated operated a total of 1,281 retail stores: 582 under the Gymboree banner, 172 Gymboree Outlet stores, 149 Janie and Jack shops, and 378 Crazy 8 stores.  

The company has partnered with liquidators Great American Group and Tiger Group to help manage the closing-down sales in its Gymboree, Gymboree Outlet and Crazy 8 stores. Closures will commence on Tuesday 18 July.

"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," comments Daniel Griesemer, president and CEO of Gymboree.

"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 organisation, with greater financial flexibility to invest in our future. Importantly, we will continue to operate a majority of our stores and will continue to deliver quality merchandise and superior service to our customers at our Gymboree, Janie and Jack and Crazy 8 brands."