- Angela Gonzalez-Rodriguez |
New York - Gap has landed upscale childrenswear brand Janie & Jack at Gymboree’s liquidation sale. According to court documents released over the weekend, it’s paying 35 million dollars for the online business and leases to Janie and Jack stores.
After filing for bankruptcy for the second time in two years, Gymboree decided to put its fashion business up for sale, breaking up its portfolio of brands.
Gap to refine its strategy with the acquisition of Janie & Jack
Earlier this year, Gymboree said unexpectedly difficult conditions in the brick-and-mortar retail industry forced them back to bankruptcy. Weak sales didn’t help either, as they led to an excess of inventory that put the last nail into the retailer’s coffin.
The acquisition of Janie & jack’s brand and business is still to be approved by the competent court.
The market has applauded Gap’s move, as it strengthens its positioning in a booming market: kidswear market is thought to have grown by 4 percent over the last year.
Picture:Janie & Jack web