×
60 609
Fashion Jobs
MIZZEN+MAIN
Account Executive - Specialty ne & Midwest
Permanent · DALLAS
COTY
Area Sales Manager
Permanent · Miami
LEVI'S
Part-Time Sales Supervisor
Permanent · Katy
SALLY BEAUTY HOLDINGS LLC
Outside Sales Representative -Cosmoprof
Permanent · Colorado Springs
SALLY BEAUTY HOLDINGS LLC
2nd Shift Inventory Control Specialist
Permanent · Jacksonville
NORDSTROM
Asset Protection - Agent - North Point Marketcenter Rack
Permanent · Alpharetta
NORDSTROM
Asset Protection - Agent - The Outlet Collection Rack
Permanent · Auburn
NORDSTROM
Asset Protection - Security Ambassador - Galleria at Roseville
Permanent · Roseville
LULULEMON
Assistant Manager, Operations | Cherry Creek Mall (1 Year Contract)
Permanent · Denver
LULULEMON
Assistant Manager, Operations | Bellevue Square
Permanent · Bellevue
LULULEMON
Assistant Manager, Operations (Hyde Park)
Permanent · Chicago
OLD NAVY
Assistant Manager, Customer Operations - Airport Square
Permanent · North Wales
OLD NAVY
Assistant Manager, Customer Operations - Monroe Mktplace
Permanent · Selinsgrove
OLD NAVY
Asset Protection Coordinator - Florida West
Permanent · Estero
OLD NAVY
Assistant General Manager, Merchandising - Jefferson Mall
Permanent · Louisville
OLD NAVY
Assistant General Manager, Merchandising - Willowbrook-Houston
Permanent · Houston
OLD NAVY
Assistant Manager, Customer Operations - Oshkosh
Permanent · Oshkosh
OLD NAVY
General Manager - Ridgewood Court
Permanent · Jackson
OLD NAVY
General Manager - Monroe Marketplace
Permanent · Selinsgrove
OLD NAVY
Asset Protection Coordinator - Portland
Permanent · Beaverton
OLD NAVY
General Manager - Tikahtnu Commons
Permanent · Anchorage
OLD NAVY
General Manager - Watertown
Permanent · Watertown
By
Reuters
Published
Jun 12, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Children's apparel retailer Gymboree files for bankruptcy

By
Reuters
Published
Jun 12, 2017

Children's apparel retailer Gymboree Corp filed for Chapter 11 bankruptcy late Sunday with a plan to cut its debt by around $1 billion and close 375 stores, according to court records.

The operator of Gymboree, Janie and Jack and Crazy 8 stores joins a growing list of specialty retailers and department stores that have closed thousands of locations or filed for bankruptcy this year as consumers shift toward online shopping.


Gymboree


James Mesterharm, Gymboree's chief restructuring officer, said in a court filing the company was hurt by lower-cost competition from rival brick-and-mortar chains Children's Place and The Gap Inc, which have less debt financing.

Gymboree's lenders agreed to provide a $35 million loan to finance the company's operations and will invest $80 million into the company when it emerges from bankruptcy, according to Mesterharm.

"We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today’s evolving retail landscape," said Daniel Griesemer, the chief executive officer of Gymboree, in a statement.

San Francisco-based Gymboree opened its first store in 1986 in California and expanded rapidly, going public in 1993. Bain Capital Private Equity took the company private for $1.8 billion in 2010.

Bain launched a global expansion aimed at overtaking rivals such as Carter's and GapKids, but Mesterharm said the chain failed to achieve the levels of growth it had anticipated.

The company estimated it had $755.5 million in assets and $1.37 billion in debt, according to court records.

Gymboree said 35 percent of its 1,300 stores are leased from GGP Inc and Simon Property Group Inc.

The stores tend to be located in malls, where declining traffic has taken its toll on specialty retailers and large department store anchor tenants. In the past year, Sears Holdings Corp and Macy's Inc have closed scores of department stores, while chains such as The Limited Stores, The Wet Seal and shoe retailer Payless Holdings have filed for bankruptcy.

Credit rating agency Moody's said last week it expects the ranks of distressed retailers will continue to grow over the next 18 months. It said 15 percent of the retailers tracked by the agency are now rated at the lowest end of the credit spectrum.

Gymboree is represented by the Kirkland & Ellis law firm, and filed its bankruptcy in Richmond, Virginia.

 

© Thomson Reuters 2022 All rights reserved.