Struggling children’s apparel retailer Gymboree is apparently preparing to file for bankruptcy.
According to a report in Bloomberg, Gymboree has more than $1 billion in debt from its Bain Capital buyout in 2010 and faces a June 1 interest payment.
The retailer hasn’t posted an annual profit since 2011, Bloomberg said.
Read more: 19 retailers on bankruptcy watch for 2017
Gymboree could be filing for bankruptcy soon
Gymboree Corporation, which operates about 1,300 retail stores in the U.S. and Canada under several brands, reported a 5% drop in comparable sales for the second quarter of fiscal 2017.
Mark Breitbard, the company’s CEO, announced plans in January to step down once a successor was appointed.
Gymboree is far from the only mall-based chain struggling right now. Major retailers have coolectively announced plans to close roughly 3,000 stores this year.
Clark says shoppers are increasingly turning to online and discount merchants for better deals.
In the meantime, he recommends that you stop buying gift cards for these retailers that may not be around much longer and redeem any that you already have.
“If you have any gift cards in your home that are for major retailers, I want you to go and shop. I want you to use them up,” Clark said. “And when you don’t know what to give somebody, give them a nice card and give them cash. You don’t have to worry about the store closing when you give them cash.”
