COLONIE — The two parent-child play centers along the Route 7 corridor in Latham are doing some tumbling and flopping this summer as one relocates and another falls into bankruptcy court.

With parents scrimping more on everything from groceries to summer camp services, Cartwheels for Kids on Tuesday filed for Chapter 7 liquidation. It plans to shut its doors by Friday.

At the same time, rival Tumbling Tykes at the Peter Harris Plaza is preparing to move into Cartwheel’s stand-alone center. It might buy Cartwheels’ assets in U.S. Bankruptcy Court in Albany.

“We took a hit with the economy,” said Cartwheels owner Martie Ripson.

Ripson is closing Cartwheels 14 months after she moved the business from East Greenbush to Latham. In 2004, she opened the center that provides a play and learning environment for children under 5 and their parents.

Cartwheels offers music, dance and art classes for preschool children. During its busy winter season, Cartwheels could see up to 50 families on weekend days. However, participation in its summer camp program plunged 75 percent this year, compared to 2007, Ripson said.

As Cartwheels headed deeper into dire straits, Ripson said she approached Tumbling owner Stacy Myron about arranging a deal between the two centers. Tumbling, less than a mile away from Cartwheels, closed Sunday and plans to reopen at Cartwheels’ former location on Sept. 8.

Tumbling also plans to buy Cartwheels’ assets, such as its jungle gym set, in bankruptcy court, Ripson said. In its Chapter 7 petition, Cartwheels cited $36,800 in assets and $380,400 in debts. Myron did not immediately return a call Wednesday seeking comment.

Cartwheels cited over 400 prepaid memberships in its Chapter 7 petition. In a July 26 letter to Cartwheels customers, Ripson said her business would stop selling new memberships and existing memberships are good through the end of August. Members can choose between getting a pro-rated refund or credit toward a Tumbling membership. Parents who had booked birthday parties for September can either receive a refund or transfer the events to Tumbling.

“We were struggling financially,” said Ripson.

Court documents show that Cartwheels ended last year with a gross income of $168,100, up 35.3 percent from 2006. But its year-to-date income was $87,100. Its largest creditor is the Internal Revenue Service, which has a $8,200 claim in withheld taxes.

“Cartwheels as a company will be closing. But our finances have been stretched to the breaking point, and this way our ‘mission’ continues under the Tumbling Tykes name,” Ripson said in the July notice.

In Cartwheels’ wake, Ripson plans to continue publishing the Capital District Kids Directory, a free monthly distribution booklet composed of advertisements for local youth-oriented attractions and programs. By next year, she might continue teaching Kindermusik classes, which help children develop language and listening skills, she said.