Gymboree has filed for Chapter 11 bankruptcy protection and will reportedly close up to 450 of its stores across North America.
It has been rough times for the company as their CEO and CFO have both stepped down in the last 6 months.
Gymboree has suffered the same fate as many retailers while struggling with weak sales and declining profit margins as more customers explore alternate options like online shopping.
In just the second quarter of 2017 alone, sales were down 5% and the company faced a net loss of $324.9 million US, according to earnings reports. Fortune previously reported that Gymboree owes more than $1 billion.
A company statement says it’s “business as usual” while the restructuring process is completed, but in the end, they will redirect its resources and close multiple locations. According to the Bankruptcy filings, up to 450 under performing locations could be closed as part of the restructuring.
The company operates 582 Gymboree stores and 172 Gymboree Outlet locations across Canada, US and Puerto Rico.
No word on the specific locations that will be effected but store closures in Canada are expected.