Another Retailer Closing Stores In Connecticut

The decline of retail continues to hit Connecticut, as another retailer announced plans to shutter locations Wednesday. Gymboree, a children's clothing retailer, announced plans to close 350 Gymboree, Janie and Jack and Crazy 8 locations nationwide, including nine in the Nutmeg State.

Gymboree stores at the Shoppes at Buckland Hills in Manchester, Meriden Square Mall in Meriden, Connecticut Post Mall in Milford and the Crystal Mall in Waterford will be closing. Crazy 8 stores at the Brass Mill Center in Waterbury, Crystal Mall, Tanger Outlets in Westbrook and Meriden Square will also close their doors. The Janie and Jack store in Greenwich will also close.

Stores not mentioned above appear to remain open for the time being.

"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," Daniel Griesemer, president and CEO of Gymboree, said in a statement. "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 organization, with greater financial flexibility to invest in our future."

In June, Gymboree elected to file for Chapter 11 bankruptcy to restructure and reduce debt by $900 million.

"This was a difficult decision to make, but we are confident that it is in the best long-term interest of our Company, our customers and our broader employee base," said Griesemer. "I am deeply grateful to our team, their exceptional ongoing dedication and their focus on continuing to put our customers at the center of all we do.”

Connecticut has seen closures of Bob's Stores, Eastern Mountain Sports, Payless Shoes, Rue 21, JC Penney in Milford and more. According to a report from Business Insider, the following retailers have filed for bankruptcy this year: Rue 21, Payless ShoeSource, Hhgregg, The Limited, RadioShack, BCBG, Wet Seal, Gordmans, Eastern Outfitters and Gander Mountain.

A recent Moody's Investors Service report detailed that Gymboree was among 22 national retailers with a debt rating of Caa or lower and were on the verge of bankruptcy. Moody's stated that special groups of retailers continue to deteriorate, such as department stores and specialty retailers.

Big retail names in Connecticut on that list include David's Bridal, Kmart, Sears and J. Crew.

"The majority of retailers remain fundamentally healthy," Moody's Lead Retail Analyst Charlie O'Shea said in a press release. "But as select groups of retailers continue to deteriorate — in particular department stores and specialty retailers — we believe the distressed ranks will keep growing, fueled in part by distinct vulnerabilities."

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