Gymboree makes first big push after bankruptcy comeback

Kids’ clothes retailer Gymboree is taking its first big step since emerging from bankruptcy: unveiling a rebranded apparel line and an increased tech push in an effort to appeal to the modern parent.

“We have spent the past nine to 10 months positioning the company, and the Gymboree brand in particular, for a turnaround,” said CEO Daniel Griesemer, who took the helm in May 2017. The firm emerged from bankruptcy in September.

“So nationwide, all new products, new brand positioning, new look and feel. Essentially, an all-new Gymboree.”

The chain rolled out its refreshed product line on Monday. It includes more basic staples, allowing for better mixing and matching — a defensive move against fast-fashion retailers that have taken a bigger share of the youth market.

“The modern parent learned to shop at Forever 21 and H&M and Zara”, where they can curate their own look by pairing separate pieces, Griesemer said, noting Gymboree’s old way of building outfits felt “dated”.

Within the next few weeks, as much as 75% of each store’s merchandise will be the new line, made up of hundreds of pieces. The remainder will be the store’s old inventory on clearance discount, he said.

Gymboree filed for chapter 11 in June 2017 after struggling with the shift to online shopping and ramped-up competition from retailers with less debt. At the time of the filing Gymboree was operating under more than $1bn in debt from a buyout from private equity firm Bain Capital.

The children’s clothing chain, founded in 1976, started as a music and play centre and grew to a major global retailer with more than 1,000 stores, before being bought by Bain in 2010. The bankruptcy filing came with funding and creditor support to restructure the company, which involved Gymboree closing about 330 stores worldwide. During the restructuring, Bain handed control to a group of lenders including Brigade Capital Management, Oppenheimerfunds and Apollo Global Management.