Gymboree gets approval for reorganisation plan
Specialty retailer Gymboree has announced that its plan of reorganisation has been approved by the US Bankruptcy Court for the Eastern District of Virginia.
The approval will enable Gymboree to complete its financial restructuring process before emerging from Chapter 11 protection by the end of the month.
According to the reorganisation plan, the company intends to complete its recapitalisation in order to eliminate more than $900m of debt.
The company also aims to secure a sustainable capital structure and optimise its store footprint in terms of size, as well as embark on a long-term growth strategy.
Gymboree president and CEO Daniel Griesemer said: "We are very pleased with the court's approval of our plan, which marks a major milestone in Gymboree's restructuring process and facilitates a path forward to our emergence as a stronger and more competitive organisation.
“The powerful combination of our great brands, a right-sized retail footprint, dedicated employees, and loyal customers are now amplified by the greater financial flexibility the plan provides."
The company had filed for bankruptcy protection under Chapter 11 in July this year.
As of 29 April, Gymboree operated 1,281 retail stores.