The company’s Canadian subsidiary, Gymboree Inc., will seek protection under the Bankruptcy and Insolvency Act of Canada in the Ontario Superior Court of Justice.

Gymboree Group will use the proceedings to wind-down its Gymboree and Crazy 8 operations. The company will look for a going-concern sale of its Janie and Jack operation as well as the sale of its IP and the Gymboree website.

“The Company has worked diligently in recent months to explore options for Gymboree Group and its brands, and we are saddened and highly disappointed that we must move ahead with a wind-down of the Gymboree and Crazy 8 businesses,” says Shaz Kahng, chief executive officer, Gymboree Group. “At the same time, we are focused on using this process to preserve the Janie and Jack business–a strong brand that is poised to grow–by pursuing a sale of the business as a going concern. As we move ahead, we are working to minimize the impact on our employees, customers, vendors and other stakeholders.”

Gymboree, Janie and Jack and Crazy 8 online and brick-and-mortar shops are currently open. The company will continue to provide updates on the Janie and Jack proceedings. Updates will also be given on the statuses of Gymboree and Crazy 8.

Gymboree Group has received a commitment for a debtor in possession financing, which consists of $30 million in new money loans to be provided by SSIG and Goldman Sachs Specialty Lending Holdings, Inc. and a "roll up" of all of Gymboree's obligations under the Prepetition Term Loan Credit Agreement in an amount not less than $89 million.

The Company has sought authorization from the Court to continue to honor customer gift cards for 30 days. Gymboree Group has discontinued its GymBucks and Gymboree Rewards programs effective immediately. Gymboree Play & Music is not included in the court proceedings