Gymboree Sends Itself To Time-Out
Unlike the parenting technique that requires a misbehaving child to sit in a designated area for a set amount of time, Gymboree Corporation, the well-known San Francisco-based company that operates specialty retail stores of children’s apparel, will serve its time-out before Judge Keith L. Phillips in the US Bankruptcy Court for the Eastern District of Virginia.
On Sunday, June 11, 2017, Gymboree filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the US Bankruptcy Court for the Eastern District of Virginia (Richmond Division), listing $755.5 million in assets and $1.365 billion in debts. Gymboree issued a press release announcing the filing and, among other things, reporting that Gymboree 1) “has signed a Restructuring Support Agreement with a majority of its Term Loan Lenders, securing critical stakeholder support for a comprehensive financial restructuring and recapitalization of the Company that will reduce Gymboree’s debt by more than $900 million” and 2) “expects to operate its overall business and the majority of its stores as usual during its financial restructuring.”
Bringing together its nationally recognized Bankruptcy & Financial Restructuring and Fashion Law: Luxury Goods, Designer Brands & Retail practices, Arent Fox’s cohesive synergy across these intersecting markets makes it uniquely positioned to monitor developments in this case involving a company that entered the apparel business in 1986 designing, manufacturing, and retailing merchandise for children.
As a courtesy to our clients and friends, Arent Fox's Bankruptcy & Financial Restructuring group has summarized information related to the bankruptcy filing below:
Lead Case No.: 17-32986
Assigned Judge: The Honorable Keith L. Phillips
- The Gymboree Corporation
- Giraffe Intermediate B, Inc.
- Gym-Card, LLC
- Gym-Mark, Inc.
- Gymboree Manufacturing, Inc.
- Gymboree Retail Stores, Inc.
- Gymboree Operations, Inc.
- S.C.C. Wholesale, Inc.
Proposed Counsel & Other Professional: The Debtors' proposed bankruptcy co-counsel are Kirkland & Ellis LLP and Kutak Rock LLP; AlixPartners LLP is serving as the Debtors’ financial advisor; and Lazard is serving as the Debtors’ investment bank.
Hearings: A first day hearing was held on June 12, 2017. Judge Phillips approved all of the Gymboree debtors’ first day motions, including their interim DIP financing motion and motion for joint administration. The docket in Case No. 17-32986-KLP should be consulted for all matters affecting this case. Gymboree’s second day hearing is scheduled for Tuesday, July 11 at 1:00 p.m. EDT.
Creditors Committee: An Official Committee of Unsecured Creditors has not yet been formed at this time.
- Voluntary Petition
- First Day Affidavit / Declaration of James A. Mesterharm, Chief Restructuring Officer of The Gymboree Corporation, in Support of Chapter 11 Petitions and First Day Motions
Arent Fox’s Bankruptcy & Financial Restructuring and Fashion Law practices will continue to monitor developments in this area. If you have any questions, please contact Andrew Silfen, Jackson Toof, Robert Hirsh, George Angelich, or the Arent Fox professional who regularly handles your matters.