NATICK – Gymboree customers are encouraged to use gift cards now, as the children’s clothing retailer is rumored to file for bankruptcy this spring.
According to Bloomberg News, the struggling retailer is facing a June 1 interest payment on its debt, and may not be able to pay it.
Gymboree is dealing with more than $1 billion in debt from a Bain buyout in 2010. Gymboree has a $761 million term loan due in February 2018.
The retailer warned last month that it’s running short on cash and may not survive if it can’t persuade creditors to refinance its debt.
Gymboree operates about 1,300 stores including one at the Natick Mall.
The retailer has not posted an annual profit since 2011.