Gymboree gets court approval to upsize DIP loan by up to $37 million

By Sarah Lizee

Olympia, Wash., Feb. 19 – Gymboree Group, Inc. obtained court approval to upsize its debtor-in-possession financing by up to $37 million in incremental commitments, according to an order filed Friday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

As previously reported, the DIP facility originally provided the Gymboree debtors with $30 million of new money loans to fund their operations and complete a sale process for some of their assets, including those related to the Janie and Jack brand.

The company said the sale process is still ongoing, and it wishes to preserve the flexibility to exercise the option to sell the Janie and Jack assets on a going-concern basis.

However, Gymboree said it does not have access to sufficient liquidity to preserve the flexibility needed.

Gymboree is a children’s apparel specialty retailer based in San Francisco. The company filed bankruptcy on Jan. 16 under Chapter 11 case number 19-30258.

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