Gap (GPS - Get Report) will acquire high-end children's fashion line Janie and Jack, while Children's Place (PLCE - Get Report) is taking over the right to the Gymboree Group brand of kids' retail and fashion stores, according to U.S. bankruptcy documents.
According to the filing submitted to the U.S. Bankruptcy Court in Richmond, Virginia, on Saturday, Gap will pay $35 million for Gymboree's high-end children's retail line Janie and Jack, including its leases to its physical stores as well as its online business and other assets including customer data.
Children's Place, meantime, will pay $76 million for the rights to the Gymboree and Crazy 8 brands, and take over an agreement with Zeavion Holding Co., the holding company that acquired Gymboree's Play & Music business in 2016. The Children's Place has 988 stores in the U.S., Canada and Puerto Rico.
The proposed transactions must be approved by the bankruptcy court. The announcement was first reported by USA Today over the weekend.
This proposed deal comes less than a week after Gap said it would spin off its Old Navy division into its own company and consolidate its retail footprint across all of its divisions by closing as many as 230 physical stores. Gap also owns the higher-end Banana Republic clothing chain.