The Gymboree Corp. announced that it has successfully completed its financial restructuring and emerged from Chapter 11 as a new corporation under the name Gymboree Group, Inc. The children's apparel retailer exited bankruptcy with a reorganization plan that includes a comprehensive recapitalization that will eliminate more than $900 billion in debt and a reduced store footprint. Gymboree filed for Chapter 11 bankruptcy in June 2017. According to court filings, the company plans to close 350 underperforming stores.
"Today marks a new beginning for Gymboree Group as we emerge as a stronger and more agile competitor in the children's apparel market," said Daniel Griesemer, president and CEO of Gymboree Group, in a statement. "With the support of our new equity owners, this process has allowed us to secure the company's long-term financial health, and we are excited about the opportunities ahead as we turn our full focus toward executing our strategic product, brand and omnichannel initiatives."
Total Retail's Take: This appears to be a case study for how to do bankruptcy "right." Gymboree entered bankruptcy with a very detailed plan and won the approval of the majority of its creditors before ever filing for Chapter 11. It exits with a plan largely similar to the original. Gymboree is part of a large group of retailers that have filed bankruptcy in 2017, including Perfumania, Aerosoles, Toys"R"Us, Vitamin World, Payless and more. We'll be watching Gymboree closely to see if its reorganization plan — including a scaled down store network — proves effective.