Sands Anderson’s bankruptcy lawyers attended today’s “First Day” hearings in the chapter 11 bankruptcy case of The Gymboree Corporation and its affiliates. Gymboree operates approximately 1,300 children’s apparel and retail stores in the U.S. and abroad under three brands: Gymboree, Janie & Jack, and Crazy 8. This bankruptcy represents the latest significant filing caused by a general downturn in the retail industry and a shift to online retail channels.

The hearings were held before the Honorable Keith L. Phillips in the Richmond Division of the United States Bankruptcy Court for the Eastern District of Virginia. Gymboree previewed a comprehensive pre-negotiated restructuring agreement that appears to have the support of key creditors. The restructuring agreement contemplates a reduction of $1 billion in indebtedness, an infusion of up to $115 million in new money, and closing more than 375 stores. To effectuate the restructuring, Gymboree anticipates filing a plan and disclosure statement by June 16, obtaining entry of an order confirming the plan by no later than September 24, with the plan to become effective on or about September 29.