Gymboree successfully emerged from Chapter 11 as a new corporation under the name Gymboree Group. With the support of its creditors and stakeholders, Gymboree Group has substantially improved its financial position and established a sustainable capital structure by eliminating more than $900 million of debt from its balance sheet and right-sizing its store footprint.
The company has 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. Gymboree Group’s pre-petition term loan lenders – including Searchlight, Apollo Global Management, Oppenheimer Funds, Brigade Capital Management, Marblegate, Nomura Securities International and Tricadia Capital Management – are the company’s new owners.
“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. “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 omni-channel initiatives.”
Kirkland & Ellis is serving as the company’s legal counsel, AlixPartners LLP is serving as its financial advisor and Lazard is serving as its investment banker.
Gymboree Group operates Gymboree, Gymboree Outlet, Janie and Jack and Crazy 8 retail stores in the U.S., Canada and Puerto Rico as well as online stores.