Gymboree exits bankruptcy with reduced store count
The Gymboree Corporation has emerged from Chapter 11 bankruptcy as new entity Gymboree Group.
The company has completed financial restructuring and a court-approved plan of reorganisation is in place, which has improved its financial position and established a sustainable capital structure by reducing its debt by more than $900m from its balance sheet.
In addition, the company also reduced its store footprint as part of the reorganisation exercise.
Gymboree Group president and CEO Daniel Griesemer said: "Today marks a new beginning for Gymboree Group as we emerge as a stronger and more agile competitor in the children's apparel market.
"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.”
In addition to an $85m new term loan from Goldman Sachs, the company has secured access to a $200m revolving credit facility from Bank of America Merrill Lynch and Citizens.
The company will operate under new owners, comprising Searchlight, Apollo Global Management, Oppenheimerfunds, Brigade Capital Management, Marblegate, Nomura Securities International and Tricadia Capital Management, which also served as pre-petition term loan lenders.