Fleeing England

The Gymboree Corp. (Burlingame, Calif.) has announced it will close its U.K. and Ireland retail operations, effective immediately.

“The closure of our U.K. and Ireland retail operations was the right decision to make,” said the specialty retailer’s chairman and ceo, Lisa Harper. “It will allow us to focus our attention and financial resources on the key drivers of our long-term growth strategy.”

The company expects the wind-down process to be substantially complete by the end of the third fiscal quarter of this year. However, Gymboree Play & Music franchises will continue to operate in the United Kingdom and Ireland.

Gymboree also announced that Debbie Nash, vp and general merchandise manager of Gymboree retail, has resigned from the company “in order to take some personal time off.” Her responsibilities will now be handled by Kip Garcia, senior vp of merchandising, kids.

These announcements came at the time the retailer reported a net loss of $3.2 million for its second fiscal quarter ended July 31, 2004. As previously announced, net sales from retail operations for the quarter increased 9 percent and same-store sales increased 2 percent. Total net sales, including sales from Gymboree Play & Music operations, were up 8 percent.

The retailer now projects that same-store sales in August will be flat compared to the prior year and in the positive low single digits for the third quarter. The United Kingdom and Ireland retail operations had been forecast to earn a modest profit in the third and fourth fiscal quarters of 2004.