It is the latest shakeup in the industry that brick and mortar tries to find itself in a challenging environment.
Children & # 39; s Place will spend $ 76 million to acquire the rights to the Gymboree and Crazy 8 brands, and will take over the Gymboree Play & Music contract, which was spun in 2016, according to court records filed Saturday.
Gap seems to go all-in on Gymborees' more upscale Janie and Jack brand. It pays $ 35 million for the online business and leases to Janie and Jack stores.
The company unexpectedly said difficult conditions in the brick-and-mortar retail forced them back to bankruptcy. Disappointing sales also led to steep discounts on goods and contributed to Gymboree's problems. It said in January that it would close 800 stores.
The acquisitions from Children & # 39; s Place and Gap, two former competitors, still require legal authorization. None of the companies immediately returned a request for comment on Sunday.
Many parents choose to have children later in life, meaning they have more disposable income to spend on children's wardrobes, according to Ayako Homma, an analyst who runs the children's clothing market at Euromonitor International.
Gap's decision to summarize Janie and Jack also indicates that the company is planning to build its brand portfolio on the heels of Old Navy spinoff.
The move is designed to let Old Navy expand on its own while the new Gap hones strategy.
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