On the heels of The Limited bankruptcy filing, another retailer appears to be on the precipice of Chapter 11.
Gymboree (Gymboree Corp.) reported yesterday that its CEO, Mark Breitbard, will be stepping down once a successor is appointed. Breitbard will assume the role of Chairman of the Board effective February 1st.
It was also reported that Gymboree has retained Lazard as a financial advisor and Kirkland & Ellis as legal advisor for restructuring options. Can a bankruptcy filing be far behind?
With the closing of all of the Limited’s stores and the announcement that teen retailer Wet Seal will close all 171 of its stores, a Gymboree bankruptcy would add to the recent bloodbath for apparel retailers. Landlords must be wary of their rights while retailers continue to falter.
For more information on how landlords or developers can protect themselves against tenant bankruptcy filings and how Stark & Stark can assist you, please contact Thomas Onder, Shareholder at (609) 219-7458 or tonder@stark-stark.com and Joseph Lemkin at 609-791-7022 or jlemkin@stark-stark.com.
Mr. Onder writes regularly on commercial real estate issue and is a member of ICSC and Chair of the 2016 ICSC PA/NJ/DE Next Generation Committee. Mr. Lemkin is a member of the American Bankruptcy Institute and regularly speaks on bankruptcy issues.