In conjunctions with its recent Chapter 11 filing and court-ordered restructuring, Gymboree intends to close approximately 350 stores, mainly across the Gymboree and Crazy 8 brands.
“Today’s announcement represents the next step in the company’s court-supervised financial restructuring as we work to more strongly position the business for long-term growth and success,” said Daniel Griesemer, president and CEO of Gymboree. “Right-sizing our store footprint is a central part of our efforts to ensure Gymboree emerges from this restructuring process as a stronger and more competitive organization, with greater financial flexibility to invest in our future.
“Importantly, we will continue to operate a majority of our stores and will continue to deliver quality merchandise and superior service to our customers at our Gymboree, Janie and Jack and Crazy 8 brands.”
In order to ensure a seamless experience for customers, the company has partnered with Great American Group and Tiger Group to help manage the closing sales in its Gymboree, Gymboree Outlet and Crazy 8 stores. The closing sales at affected stores are scheduled to begin mid-July.
Gymboree signed a restructuring support agreement with a majority of its term loan lenders in June, securing critical stakeholder support for a comprehensive financial restructuring and recapitalization that is being facilitated through a voluntary Chapter 11 filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.
Kirkland & Ellis is serving as the company’s legal counsel, AlixPartners is serving as its financial advisor, and Lazard is serving as its investment bank.
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