Bain Capital’s Gymboree Files for Chapter 11 Bankruptcy

Back in 2010, Bain Capital bid up for Gymboree, paying $1.8b, or a 23% premium, for the children’s retailer. An analyst from Stifel praised the deal, saying “Kids keep growing, and you have to keep dressing them. It’s one of the facts of life.”

Since then, as it customary in the world of private equity, Gymboree’s balance sheet was leveraged, stretched to the limits, resulting in the retailers going bust. They’re not in the midst of a restructuring — reducing debts by more than $900m.

“The steps we are taking today allow the Company to definitively address its debt and enable the management team to turn its full focus toward executing our key strategies, including our Product, Brand and Omni-channel initiatives,” CEO Daniel Griesemer said in a statement. “We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today’s evolving retail landscape.”

According to recent filings, Gymboree had $1.4b in debt. They’re tapped AlixPartners to help restructure the company, after receiving a $308m lifeline to keep the retailer’s doors open.