Gymboree to exit bankruptcy

Children’s apparel retailer Gymboree Corp. will exit Chapter 11 bankruptcy as a going concern — and with a reduced footprint.




The children's apparel retailer won court approval to exit bankruptcy with a reorganization plan that includes a comprehensive recapitalization that will eliminate about $1 billion in debt. It expects to complete its financial restructuring process and emerge from Chapter 11 by the end of the month.



Gymboree filed for Chapter 11 bankruptcy in June 2017. According to court filings, the company plans to close 330 underperforming stores. Post-bankruptcy, it will have a $225 million credit facility, a $48.5 million exit asset-backed term loan replacement facility and a $35 million exit term loan facility.



"We are very pleased with the Court's approval of our plan, which marks a major milestone in Gymboree's restructuring process and facilitates a path forward to our emergence as a stronger and more competitive organization," said Daniel Griesemer, president and CEO of Gymboree. "While there is still work ahead to complete the process, we are excited about the future opportunities for Gymboree as we continue to transform the business."



As of April 29, 2017, the Company operated a total of 1,281 retail stores: 582 Gymboree stores (532 in the United States, 49 in Canada and one in Puerto Rico), 172 Gymboree Outlet stores (171 in the United States and one in Puerto Rico), 149 Janie and Jack shops (148 in the United States and one in Puerto Rico) and 378 Crazy 8 stores in the United States.