Gymboree files for bankruptcy protection to reduce debt

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WASHINGTON (AP) -- Children's clothing retailer Gymboree Corp. is filing for Chapter 11 bankruptcy protection, the latest sign of traditional retailers' struggles as shoppers shun stores and buy online.

The San Francisco-based company has nearly 1300 stores across the country, including a location in CherryVale Mall. A consultant for Gymboree has suggested they close about 375 stores but they haven’t revealed which stores will be closing.

Gymboree is the latest retailer to file Chapter 11, close stores or go out of business entirely in 2017. Shoe chain Payless ShoeSource filed for bankruptcy protection in April and The Limited closed all 250 of its remaining stores early this year. Teen retailer Wet Seal in January said it would close its 171 stores.

Gymboree officials say they’ve reached an agreement with their lenders that will allow them to stay in business as they attempt to restructure.