Baby and toddler fashion business Gymboree has decided to pull down the shutters on its European retail operation.
The US-based company has been struggling in the UK and Ireland for more than a year, with store closures and operational reviews dogging the retail division. The remaining 22 shops will close over the next three months.
Located in high-profile locations such as Regent Street and Bluewater, the stores should be attractive to fashion retailers.
The Gymboree Play & Music business - a separate franchise operation that provides music classes for children under five - will remain in the UK and is embarking on expansion. Gymboree Play & Music director Sandra Marchetti said a further five premises will open by the end of the year, bringing the total to 15.
Analysts at Merrill Lynch were not surprised by Gymboree's retail exit from Europe. 'The business, while profitable in the past, has been struggling. The efforts needed to take it to the next level would have included a financial step up. These funds are better used by growing and improving the US business,' the broker noted.
New ventures in the US include seven-strong fashion chain Janeville, aimed at mothers, which was launched earlier this year.
On Tuesday, parent company Gymboree Corp posted widened losses in the three months to July 31 of US$3.2 million (£1.8 million), versus a loss of US$1.1 million (£602,000) in the comparable quarter last year.
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