Three Gymboree Store in Metro Atlanta to Close after Bankruptcy Filing
Friday, July 14th, 2017
The Gymboree Corporation announced that, following a comprehensive evaluation of its retail footprint as part of its previously announced court-supervised financial restructuring, the Company intends to close approximately 350 stores, mainly across the Gymboree and Crazy 8 brands. With the right size store base, the Company will be able to focus resources on locations with the greatest potential and improve the profitability of the overall business.
"This 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. This was a difficult decision to make, but we are confident that it is in the best long-term interest of our Company, our customers and our broader employee base. I am deeply grateful to our team, their exceptional ongoing dedication and their focus on continuing to put our customers at the center of all we do."
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 on Tuesday, July 18, 2017. For those interested in these sales, updated information will be available on the Company's restructuring website at www.gymboreerestructuring.com.
As announced on June 11, 2017, Gymboree signed a Restructuring Support Agreement with a majority of its Term Loan Lenders, securing critical stakeholder support for a comprehensive financial restructuring and recapitalization that is being facilitated through a voluntary Chapter 11 filing with the United States Bankruptcy Court for the Eastern District of Virginia.
Additional information regarding Gymboree's financial restructuring including court filings and information about the claims process are available at https://cases.primeclerk.com/gymboree or by calling Gymboree's claims agent, Prime Clerk, at 844-822-9233 (or 646-486-7945 for international calls) or by sending an email to gymboreeinfo@PrimeClerk.com.
Kirkland & Ellis LLP is serving as the Company's legal counsel, AlixPartners LLP is serving as its financial advisor, and Lazard is serving as its investment bank.
Town Center at Cobb
400 Ernest W. Barrett
2100 Pleasant Hill Road,
Georgia Square Mall
3700 Atlanta Highway,
1331 Cumberland Mall,
The Avenue Peachtree City
253 City Circle
Peachtree City, GA
7804 Abercorn St.,