CLOSE

Shoppers have a limited time to use gift cards at Gymboree and Crazy 8 Murfreesboro Daily News Journal

LINKEDINCOMMENTMORE

Janie and Jack stores have been spared from the chopping block.

Gap Inc. announced Monday that it purchased the high-end children’s fashion line for $35 million from Gymboree Group Inc. The acquisition includes Janie and Jack's online business and leases to its more than 100 stores.

"I am pleased to welcome Janie and Jack to the Gap Inc. family and to expand our portfolio into the premium kids and baby business,” said Art Peck, president and CEO of Gap Inc., in a statement. “Janie and Jack has a strong and loyal customer following that complements our existing brands, with a clear path for growth ahead.”

The stores will operate as a standalone brand and continue to based in San Francisco, and there's an additional agreement to purchase "the Janie and Jack inventory at cost plus additional fees and expenses," Gap announced.

Store closings: Victoria's Secret says it is shuttering 53 more stores

Gap closings: About 230 stores to close and Old Navy to be spun off into its own company

“This is an exciting outcome for Janie and Jack, and we are incredibly pleased that our brand will continue to serve our customers with its unique modern classic aesthetic as part of the Gap Inc. family,” said Shelly Walsh, general manager of Janie and Jack, in a statement.

The news comes days after Gap announced it would close about 230 stores in the next two years and was spinning Old Navy into its own company.

San Francisco-based Gymboree, which filed for Chapter 11 bankruptcy in January, also is selling rights to the Gymboree and Crazy 8 brands to The Children's Place for $76 million, according to a bankruptcy court document filed Saturday.

A rival of Gymboree, The Children's Place has 988 stores in the U.S., Canada and Puerto Rico.

“The Gymboree acquisition provides us with the opportunity to revitalize the Gymboree brand across various channels,” said Jane Elfers, president and CEO of The Children’s Place Inc., in a statement to USA TODAY. “We are excited for the opportunity to fill the void in the marketplace for this unique product.”

Payless ShoeSource bankruptcy: March 11 is last day to use gift cards

Are more store closings coming?: Firm forecasts 'No light at the end of the tunnel'

Contributing: Mike Snider

Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko

LINKEDINCOMMENTMORE
Read or Share this story: https://www.usatoday.com/story/money/2019/03/04/gap-acquires-janie-and-jack-stores-and-website-35-million/3060739002/