Gymboree, the US children’s apparel retailer, is reportedly preparing to file for bankruptcy protection, unlikely to be able to meet its interest payment due on June 1.

A Gymboree bankruptcy would take the total of retail industry collapses in 2017 beyond the number for the entire 2016 year, a sobering reflection of the state of mall-based retailing in North America.

Quoting “people with knowledge of the matter,” news service Bloomberg said the company is seeking to reorganise its debt and may hand over control of the business to its lenders, which include Brigade Capital Management, Oppenheimer Holdings and Searchlight Capital. Gymboree is currently owned by private equity investor Bain Capital, which bought the business in 2010 and owes more than US$1 billion.  

Gymboree has 1300 stores across the US and has made a loss every year since 2011.

Last year, it sold its play centre business to a Singapore investor for $127.5 million.