Gymboree completes financial restructuring, emerges as Gymboree Group
The Gymboree Corporation on Friday announced that it has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy as a new corporation under the name Gymboree Group. The company's court-confirmed Plan of Reorganization went into effect on Friday
"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.
The children’s retailer filed for Chapter 11 bankruptcy in June, citing $755.5 million in assets and $1.37 billion in debt. The restructuring was intended to slash the debt by about $1 billion and close 350 stores, which wouldn’t include company-operated Crazy 8 and Jack and Janie stores.
Gymboree’s lenders also lent $35 million to finance the company’s operations and agreed to invest $80 million when the company emerges from bankruptcy.
Gymboree managed to eliminate over $900 million in debt from its balance sheet, and the company received an $85 million new term loan from Goldman Sachs and access to a $200 million revolving credit facility from Bank of America Merrill Lynch and Citizens.
In addition, pre-petition term loan lenders Searchlight, Apollo Global Management, Oppenheimerfunds, Brigade Capital Management, LP, Marblegate, Nomura Securities International and Tricadia Capital Management, LLC are Gymboree's new owners.
"With the support of our new equity owners, added Griesemer, “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 Omni-channel initiatives.”
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