Getting ‘Gym’ in shape

Fix for kids duds

Gymboree’s lenders are working on a fast-paced comeback strategy for the bankrupt kids’ clothing retailer, The Post has learned.

Bondholders Brigade Capital, Oppenheimer and Searchlight Capital have already begun to execute a detailed plan to turn around the 1,300-store chain retailer, which filed for Chapter 11 earlier this month, according to a source with direct knowledge of the effort.

They are nearly done restructuring the leases for the 900 stores that will remain open, and believe the new leases will save the company $20 million a year, according to a source.

“Tenants right now have a lot of leverage,” the source said, adding that Gymboree is closing roughly 400 stores.

Meanwhile, the new owners are pouring cash into beefing up Gymboree’s Web operations, with plans for an August launch in time for the crucial back-to-school season, the source said.

Currently, Gymboree generates about 20 percent of its sales online. That is roughly the same percentage as Children’s Place, even though the Children’s Place’s site is far su- perior to Gymboree’s, the source said.

When Gymboree filed for bankruptcy, its chief restructuring officer, James Mesterharm, said in a court filing that its on-line platform was “dated and unsupported.”

With a revamped Web site, “Gymboree could go from 20 percent of sales being online to 50 percent,” the source said.

New Gymboree CEO Daniel Griesemer, who assumed the position May 22, was formerly CEO of women’s clothier Coldwater Creek, which he transformed from a catalog company to a leading e-retailer, the source said.

When it filed for bankruptcy, Gymboree generated $75 million in earnings before interest, taxes, depreciation and amortization, or Ebitda, while owing $90 million in annual interest payments.

However, post-bankruptcy the debt will be reduced to several hundred million. With the interest payments greatly reduced, Gymboree will suddenly be profitable.

Gymboree’s collapse was a blow to Bain Capital, which acquired the company for $1.8 billion in 2010 with plans for a global expansion.

Gymboree declined to comment.