Gymboree signed a restructuring support agreement (RSA) with a majority of its term loan lenders, securing support for a comprehensive financial restructuring and recapitalization that will reduce Gymboree’s debt by more than $900 million, establish a sustainable capital structure and position the company for long-term success.

Gymboree secured commitments for $35 million in new-money debtor-in-possession financing from a majority of its existing term loan lenders and up to $273.5 million in additional DIP financing from the existing lenders under Gymboree’s asset-backed loan credit facilities.

According to related court documents, Credit Suisse Cayman Islands serves as administrative agent for the term loan lenders, and Bank of America is administrative agent for the ABL lenders.

“The steps we are taking today allow the company to definitively address its debt and enable the management team to turn its full focus toward executing our key strategies, including our Product, Brand and Omni-channel initiatives,” said Daniel Griesemer, president and CEO of Gymboree.

“The support of our lenders and their new financing commitment underscores their confidence in the company. We have three great brands, strong operations and dedicated employees, and throughout this process, we will continue to deliver superior service to our customers and put them at the center of all we do.”

To facilitate the financial restructuring and recapitalization, Gymboree has elected to file voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Additionally, Andrew North is stepping down as CFO for personal reasons. He will remain with the company for a period of time as a consultant. Liyuan Woo, Director at AlixPartners, has been appointed interim CFO, while the company searches for a replacement. James A. Mesterharm, managing director and co-lead Turnaround & Restructuring Services at AlixPartners, has been appointed CRO.

Kirkland & Ellis is serving as legal counsel, AlixPartners is serving as financial advisor, and Lazard is serving as investment bank.

San Francisco-based Gymboree is a children’s retail clothing chain.