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Gymboree
Gymboree
Gymboree
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Gymboree is a sub brand of The Children's Place. Gymboree began with operating retail stores between the early 1970s and the later 2010s. It was founded by Joan Barnes.[1]

Key Information

History

[edit]

Early years

[edit]
Crazy8 inside Southern Park Mall (Closed 2019)

In 1986, the company opened a chain of clothing stores named Gymboree. Gymboree stores offered coordinating children's clothing. The sizes ranged from newborn to size ten. As of January 2019, it operated 380 Gymboree stores, 154 Gymboree outlets, 147 Janie & Jack stores, 253 Crazy 8 stores, and 11 Crazy 8 outlets in the U.S. and Canada.[2]

Crazy 8 was started in August 2007. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.

In 2010, Bain Capital acquired the company for US$1.8 billion.[3]

Bankruptcy and liquidation

[edit]

In June 2017, Gymboree announced it was filing for Chapter 11 bankruptcy protection.[4] In September 2017, the company emerged from bankruptcy.[5][6]

In November 2018, it was reported that Gymboree would file for bankruptcy for the second time in 14 months, and as a result, Gymboree announced plans to discontinue the Crazy 8 brand after the holiday season.[7]

On January 17, 2019, Gymboree filed for Chapter 11 bankruptcy protection, and eliminated all Gymboree, Gymboree Outlet, and Crazy 8 brick-and-mortar formats as a result. The company sold its Janie & Jack brand to Gap, Inc.[8]

Play & Music Centers

[edit]
Gymboree Play & Music in London

In July 2016, The Gymboree Corporation sold the Gymboree Play & Music business to Zeavion Holding, a private company with a focus on the education and entertainment sectors. Gymboree Play & Music is now completely separate from the Gymboree Corporation and is operating parent-child play classes for ages 0–5. As of 2023, Play & Music operates in over 40 countries and has more than 733 centers internationally.[9]

Subbrand

[edit]

On June 24, 2019, Gymboree and Crazy 8's assets were acquired by The Children's Place, who announced that the former would become a digitally native sub brand with store-within-a-store locations at The Children's Place stores.[10] It was announced on January 30, 2020, that The Children's Place would debut Gymboree in February that year, featuring an "early access" program that would allow early access to the first 10,000 customers who register a spot.[11]

Lawsuits

[edit]

In November 2005, Gymboree settled a lawsuit relating to overtime compensation in Riverside, California for $2.3 million. The lawsuit alleged that Gymboree did not pay mandatory overtime or provide required meal breaks.[12]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Gymboree

View on Grokipedia
from Grokipedia
Gymboree is an American specializing in children's apparel and programs, encompassing colorful, playful for infants and toddlers as well as interactive play-and-music classes designed to foster development in children aged 0-5. Founded in 1976 by Joan Barnes in Mill Valley, , Gymboree initially operated as a single parent-child play center offering age-appropriate activities in a safe environment to promote creativity and confidence among young children. The program quickly expanded through , reaching 125 locations across 20 U.S. states by and generating over $1 million in annual revenue. In 1986, the company diversified into retail by opening its first children's store in , featuring bright, durable apparel inspired by the play centers and designed by in-house creators. This marked the birth of the Gymboree clothing line, which grew rapidly to over 200 stores by 1994, supported by a in 1993 that raised $43 million and propelled sales to $130 million that year. The brand faced significant challenges in the 2010s, including a leveraged buyout by Bain Capital in 2010 for $1.8 billion that burdened it with debt amid shifting retail landscapes and competition from brands like The Children's Place and Carter's. Gymboree filed for Chapter 11 bankruptcy in 2017, emerging later that year, but filed again in January 2019, leading to the liquidation of all approximately 800 U.S. stores. In March 2019, The Children's Place acquired the Gymboree and Crazy 8 brand intellectual property for $76 million, while Gap Inc. purchased the Janie and Jack line. The Play & Music division had been sold separately in July 2016 to Singapore-based Zeavion Holding for $127.5 million, allowing it to operate independently with over 700 locations in more than 40 countries today. Under The Children's Place, Gymboree clothing relaunched online and in select stores in early 2020, emphasizing inclusive, bow-to-toe collections for young children. By late 2024, the brand marked a brick-and-mortar resurgence with its first standalone U.S. store since the liquidation, opening at Westfield Garden State Plaza in Paramus, New Jersey.

History

Founding and early expansion

Gymboree was founded in 1976 by Joan Barnes, a mother from , who sought to create a safe and engaging space for parents and young children to participate in age-appropriate play activities together. Unable to find suitable options for her infant son amid limited safe play environments in the area, Barnes drew on her background in dance instruction to develop a parent-child program focused on developmental exercises, music, and interactive play for children aged 0-5. The initiative began modestly with a $3,000 in a church basement, initially called Kindergym, before evolving into the Gymboree Play & Music format. The first official Gymboree Play & Music center opened in , emphasizing physical and through structured play sessions that encouraged bonding between caregivers and children. This location quickly gained popularity, leading to rapid as demand grew among families seeking enriching experiences. By 1984, the network had expanded to 125 franchised centers across 20 states, collectively generating over $1 million in annual revenue and establishing Gymboree as a pioneer in play-based education. In 1986, Gymboree extended its brand into retail by launching a line designed to complement the play programs, with an initial focus on colorful, durable playwear suitable for active young children. The first standalone store opened in the Bay Area, near existing play centers, offering coordinating outfits and accessories in sizes from newborn to age seven, which resonated with parents familiar with the Gymboree ethos. This marked an early financial milestone, as the apparel venture built on the established customer base from the play programs, paving the way for further store openings in upscale Bay Area communities.

Growth and subbrand development

Following its on the NASDAQ exchange in March 1993, which raised approximately $43 million to fund expansion, Gymboree accelerated its growth as a national retailer. The proceeds enabled the opening of numerous new stores, increasing the total from about 120 locations at the end of 1993 to more than 200 by late 1994. This rapid scaling continued through the mid-1990s, with the company adding over 50 stores in 1995 alone and operating more than 279 retail outlets across the by that time. By the early , Gymboree had expanded to 555 stores in the U.S., , and , reflecting a multi-brand strategy that diversified its market presence. To broaden its product offerings and capture different market segments, Gymboree developed several subbrands during the 2000s. In 2004, it launched , an upscale line targeting infant and toddler apparel with a focus on premium, boutique-style clothing in sizes from newborn to age 10. This subbrand emphasized high-quality fabrics and classic designs, complementing Gymboree's core . In 2007, Gymboree introduced Crazy 8, a value-oriented offering affordable basics and playwear for children up to age 12, priced about 30% lower than the main line to appeal to budget-conscious families. These subbrands helped drive revenue diversification, with Crazy 8 opening its first stores in , , and the Northeast that year. Gymboree's international efforts began in the late , building on its domestic footprint. It opened its first store in in 1997 and established master franchisees in by the end of the decade, alongside operations in countries like and . By the early , the company had a presence in over 20 countries through a mix of company-owned stores and franchises, though retail expansion remained primarily North American-focused. This overseas push supported overall growth, with 41 stores in and three in by 2011. In 2010, Gymboree underwent a significant transformation through its acquisition by affiliates of for $1.8 billion in a , taking the company private. The deal, completed in November 2010, provided capital for further expansion amid slowing sales growth. Under Bain's ownership, Gymboree grew its store count to 1,037 locations across its brands by early 2011, including outlets in the U.S., , and . This period marked the peak of its physical footprint, supported by the multi-brand approach that integrated Gymboree, , and Crazy 8. The strategy culminated in strong financial performance, with total net sales reaching $1.25 billion in fiscal 2015, up 1.5% from the prior year, driven by contributions from all subbrands and Play & Music programs. This peak underscored the effectiveness of Gymboree's diversified portfolio in sustaining growth during the and early , before mounting pressures emerged.

Financial decline and bankruptcies

Gymboree's financial challenges intensified following its 2010 by for $1.8 billion, which saddled the company with approximately $1.47 billion in debt, representing about 70% of the acquisition cost. This debt burden grew heavier in the 2010s amid declining mall traffic, as shifted toward and away from traditional brick-and-mortar retail. The children's apparel market became increasingly oversaturated, with intensified competition from giants and fast-fashion rivals, while Gymboree struggled to develop a robust online presence and adapt to changing preferences for affordable, versatile . In July 2016, amid ongoing financial pressures, Gymboree sold its Play & Music division to Singapore-based Zeavion Holding for $127.5 million, allowing the program to operate independently with over 700 locations in more than 40 countries. In June 2017, Gymboree filed for Chapter 11 bankruptcy protection, citing over $1.1 billion in and ongoing operational losses driven by these market pressures. As part of the restructuring, the company closed more than 350 underperforming stores, primarily Gymboree and Crazy 8 locations, and reduced its by nearly $900 million through a prenegotiated plan confirmed by the court in September 2017. Gymboree emerged from bankruptcy in early 2018 under new management led by CEO Daniel Griesemer, with its existing lenders assuming ownership, but persistent losses and insufficient revenue growth prevented a sustainable turnaround. The company's woes culminated in a second Chapter 11 filing in January 2019—often termed a "Chapter 22" due to the repeat bankruptcy—which led to the full liquidation of its operations. At that point, Gymboree carried a debt load of approximately $212 million in total liabilities, compounded by failure to capitalize on digital sales channels amid e-commerce dominance. The filing triggered the closure of all remaining approximately 800 Gymboree and Crazy 8 stores by mid-2019, effectively ending the brands' retail presence. As part of the asset divestitures, Gymboree's upscale Janie and Jack brand was sold to Gap Inc. for $35 million, including its intellectual property, website, and store leases, allowing the premium children's line to continue independently.

Acquisition and revival

Announced in March 2019 and completed in April 2019, , Inc. acquired the intellectual property assets of Gymboree and its sister brand Crazy 8 from the bankrupt Gymboree Group for $76 million in cash, marking the beginning of the brand's revival under new ownership. This acquisition allowed to integrate Gymboree's established name in children's apparel into its portfolio, focusing initially on leveraging its existing infrastructure to relaunch the brand without the burdens of Gymboree's prior physical store network, which had been liquidated during the bankruptcy proceedings. The revival began in early 2020 as an online-only operation, with Gymboree products launching on a dedicated site, Gymboree.com, and through pop-up shop-in-shop sections in over 200 stores across the and . This strategy was accelerated by the , which shifted consumer behavior toward digital channels and temporarily halted broader retail expansions; by 2021, Gymboree had solidified its independent presence, emphasizing online sales to build amid store closures and disruptions. The integration with The Children's Place's operations enabled shared logistics and marketing, contributing to steady growth in the brand's digital footprint during this period. By 2023, Gymboree's successful integration had become a key growth driver for amid its overall portfolio diversification. This milestone underscored the brand's resurgence through targeted assortments in infant and toddler clothing, bolstered by cross-promotions within ecosystem. The momentum continued into a brick-and-mortar expansion starting in 2024, with the opening of Gymboree's first standalone retail store at in , on November 20, 2024, featuring premium displays of apparel and accessories. Plans as of 2024 called for opening more than 10 additional U.S. locations by the end of 2025, including side-by-side formats with stores, to capitalize on renewed demand for experiential family shopping.

Products and services

Clothing and accessories

Gymboree specializes in children's apparel for ages 0-12, with a philosophy centered on playful, colorful that incorporate themes such as florals, animals, and seasonal prints to evoke joy and imagination in everyday wear. The brand's collections emphasize coordinating outfits from bow-to-toe, allowing for mix-and-match versatility while prioritizing comfort for active lifestyles. Key product categories include newborn essentials like bodysuits and pants sets, toddler playwear such as polos, dresses, and , school uniforms featuring polos, chinos, and jumpers in wrinkle-free fabrics, sleepwear known as "Gymmies" in soft pajama sets, and accessories including hats, socks, and bags. Sizing standards are tailored for children from newborn to size 12, with fits designed for active play, such as relaxed silhouettes and stretchy elements to accommodate movement. Fabrics primarily consist of soft, durable blends, including and linen-cotton mixes, ensuring and longevity through multiple wears and washes. Gymboree's pricing strategy positions it in the market, with individual items typically ranging from $10 to $50, bridging affordable and higher-end children's wear through quality construction and thematic appeal. For example, tops often retail around 13−13-46, while coordinated sets fall between 30−30-91 before discounts. Following its acquisition and revival by in , Gymboree introduced sustainability efforts, including the Homegrown collection launched in 2023, which features items made from and recycled materials to promote environmental responsibility without compromising on style. This line uses 100% organic combed for pieces like sweaters and dresses, aligning with broader goals for responsibly sourced materials by 2025.

Play & Music programs

Gymboree's Play & Music programs provide interactive, play-based classes designed for children from birth to 5 years old, featuring 45-minute sessions that integrate music, movement, and sensory activities to foster developmental milestones in physical coordination, cognitive , and social-emotional bonding. These classes emphasize parent-child interaction in a safe, stimulating environment, using age-appropriate equipment like tunnels, balls, and parachutes to encourage gross and fine motor skills, , and confidence-building through guided play. The curriculum, developed by experts, aligns with research on holistic child growth, prioritizing joyful learning over structured academics. The programs are divided into progressive class levels to match evolving developmental needs, including Babies (0-8 months) focusing on sensory stimulation and through gentle and tactile experiences; Crawlers (6-14 months) and Walkers (10-18 months) incorporating caregiver-guided activities to build crawling, standing, and early via rhythmic songs and group movement; Runners (16-24 months) and Explorers (22-36 months) promoting independence, cooperation, and problem-solving through imaginative play, obstacle courses, and peer interactions that enhance motor proficiency and emotional regulation; with additional classes and options up to 5 years. As of 2025, Gymboree Play & Music maintains over 700 franchised locations across more than 40 countries, operating as a distinct entity owned by ZEAVION Holding since its acquisition from the Gymboree Group for $127.5 million. This global network supports -oriented communities by delivering consistent, high-quality programming through trained instructors who follow a standardized . The franchise model targets urban and suburban areas with high densities to maximize and , with financial requirements varying by model (mobile or brick-and-mortar), initial fees from $20,000 to $45,000, and ongoing royalties typically 6-8% of gross revenues plus a fund contribution. In response to the , Gymboree introduced hybrid virtual classes in 2020, enabling remote participation in adapted play, music, and learning sessions via live-streamed formats that preserved interactive elements for continued developmental support during closures.

Operations and

Retail and distribution

Gymboree's primary sales channels include its platform at gymboree.com, which was relaunched following the brand's acquisition by in 2019, enabling for children's apparel. As part of The Children's Place's operations, Gymboree benefits from an integrated digital infrastructure, with the parent company's penetration projected to exceed 60% of total retail sales in fiscal year 2025. Physical retail consists of standalone Gymboree stores, with several new locations opened in U.S. malls during 2024 and 2025, such as the flagship store at in , in November 2024, Woodbury Common Premium Outlets in August 2025, alongside outlets like Jackson Premium Outlets and . Additionally, Gymboree maintains dedicated sections within over 200 stores across the , allowing customers to access its products in a hybrid retail format. Distribution relies on global sourcing primarily from Asian manufacturers, with emphasizing responsible practices to ensure ethical supply chains free from and forced labor. Products are shipped to U.S.-based distribution centers for efficient fulfillment, supporting both orders and in-store stocking as part of post-acquisition operational enhancements. Omnichannel strategies include buy online, pick up in-store () options, available at participating locations for same-day collection, enhancing customer convenience across digital and physical touchpoints. Crazy 8 operates as Gymboree's budget-oriented sub-line, integrated into select Gymboree and stores, offering affordable basics at lower price points than core Gymboree items to target cost-conscious families.

Franchise and ownership structure

The Gymboree clothing brand operates as a wholly owned of , Inc., following its acquisition of the brand's assets for $76 million in 2019. Headquartered in , the brand has been integrated into The Children's Place's portfolio, which oversees its retail operations and strategic direction. In a distinct structure, the Gymboree Play & Music division was divested in and acquired by Zeavion Holding Pte. Ltd. for $127.5 million, establishing it as an independent entity focused on programs. Under Zeavion's ownership, Play & Music employs a franchise-heavy model, with more than 700 franchised locations operating across more than 40 countries, emphasizing global expansion through education-oriented initiatives. Franchisees for Play & Music must demonstrate a minimum of $50,000 and $25,000 in liquid assets, with initial fees ranging from $35,000 to $45,000 depending on the model—either mobile (requiring 900–1,500 square feet in partnered facilities) or brick-and-mortar centers (1,700–2,800 square feet for play, art, and spaces). Comprehensive is provided to owners, supporting operational consistency, while Zeavion prioritizes scalable growth in international markets. Leadership for the clothing brand aligns with , where former CEO Jane Elfers directed the post-acquisition integration until her departure in 2024; the subsidiary now reports to interim CEO Muhammad Umair. Zeavion, as the parent for Play & Music, drives its franchise network's worldwide presence without direct ties to the apparel operations. Following the 2019 Chapter 11 bankruptcy of Gymboree Group Inc., the original corporate entity was effectively dissolved, with its clothing-related assets reorganized as a under , Inc., a publicly traded (NASDAQ: PLCE). Play & Music, already separated, continues as a standalone operation under Zeavion Holding Pte. Ltd., maintaining its franchise-based legal framework. In 2012, The Gymboree Corporation settled a class-action enforcement action brought by the Attorney General's Office alleging violations of state wage and hour laws by failing to provide required unpaid meal breaks to store managers working from July 2009 to July 2011. The settlement required Gymboree to pay $130,000 in restitution to affected current and former managers, $320,000 in civil penalties to the state, and $13,600 to revise its meal and rest break policies to ensure compliance. This case highlighted common retail sector issues where managers were not fully relieved of duties during breaks, effectively rendering the time compensable. Prior to its 2017 bankruptcy filing, Gymboree faced additional wage and hour disputes, including a 2016 class-action settlement in over alleged shorting of wages, meal and rest break violations, and off-the-clock work at its Dixon . The company agreed to pay $1.125 million to resolve claims from approximately 200 workers employed between 2011 and 2015, with funds allocated for unpaid wages, penalties, and attorney fees. Although not involving store assistant managers specifically, the suit underscored patterns of misclassification and inadequate compensation in Gymboree's logistics operations amid operational pressures. In 2019, amid its second bankruptcy proceedings, former employee Katherine Pocrass filed a class-action in alleging violations of the Worker Adjustment and Retraining Notification (WARN) Act due to sudden store closures and mass layoffs without the required 60 days' notice, impacting around 400 workers and resulting in lost wages and benefits. The complaint framed these actions as a form of wage theft through improper handling of final pay and deductions during the closures. This case was part of broader WARN litigation resolved later that year with a $3.6 million settlement allowing administrative claims for back pay equivalent to 60 days' wages for eligible employees. These lawsuits reflect persistent challenges in Gymboree's retail , including high turnover driven by irregular scheduling, disputes, and compensation shortfalls in a competitive apparel sector. Post-revival under new ownership, the company has focused on policy updates to mitigate such risks, though no major public suits have emerged since 2019.

Bankruptcy proceedings disputes

In the 2017 Chapter 11 proceedings filed in the United States Bankruptcy Court for the Eastern District of , Gymboree faced objections from the U.S. Trustee regarding the adequacy of disclosures in its proposed reorganization plan, particularly concerning the solicitation of creditor votes. These challenges centered on the plan's inclusion of non-standard provisions, but the court ultimately confirmed the amended joint plan on September 7, 2017, enabling debt restructuring of approximately $1.1 billion and the closure of up to 450 stores while retaining operations. The confirmation resolved creditor disputes through negotiated support from a majority of stakeholders, with the plan becoming effective on September 29, 2017. Gymboree's 2019 Chapter 11 liquidation filing, also in the Eastern District of , triggered a class-action under the Worker Adjustment and Retraining Notification (WARN) Act, initiated by former employee Katherine Pocrass on behalf of approximately 400 laid-off staff who received no 60-day advance notice of termination following the January 16 filing. The suit expanded to cover nearly 1,800 affected workers, alleging violations that entitled them to back pay and benefits. The bankruptcy court approved a $3.6 million settlement as an administrative claim against the estate on September 16, 2019, over objections from the U.S. Department of Justice, providing recovery to the class members and resolving the WARN claims embedded in the proceedings. During the , disputes arose over unfulfilled severance promises stemming from the 2017 bankruptcy, where employees had been assured up to one year's in the event of termination. The board terminated the severance plan on the day of the filing, affecting around headquarters employees and 10,000 store staff without payouts, while executives received approximately $2.1 million in retention bonuses disguised as severance for eight senior leaders, including CEO Mark Breitbard and Thomas O'Boyle. Employee allegations of executive misconduct included underreporting bonuses in court filings—listing only $270,000 for two individuals—and instances of leaders attending the shortly after the filing, prompting claims of preferential treatment amid the wind-down. These issues lacked viable under law, as the plan termination was permissible, though they fueled broader scrutiny in the process. Parallel to the U.S. proceedings, Gymboree Canada initiated under subsection 50.4(1) of the Bankruptcy and Act (BIA) via a Notice of Intention to Make a Proposal on January 17, 2019, in the Ontario Superior Court of Justice, facilitating cross-border coordination for store closures and asset liquidation. This mirrored the U.S. Chapter 11 structure, allowing for orderly wind-down of Canadian operations without invoking the more complex Companies' Creditors Arrangement Act (CCAA). The Eastern District of Virginia court oversaw the 2019 proceedings, approving bidding procedures and asset sales on January 17, 2019, with an auction completed by February 25 and going-out-of-business sales commencing thereafter. The full wind-down concluded by April 30, 2019, when agreements expired, enabling over $100 million in creditor distributions, including the WARN settlement, and the transfer of assets to a bidder.

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  59. https://www.gymboree.com/us/help-center/ordering/buy-today
  60. https://ir.law.utk.edu/cgi/viewcontent.cgi?article=1052&context=utk_studlawbankruptcy
  61. https://www.sec.gov/Archives/edgar/data/1041859/000162828019007308/exhibit1062019q1.htm
  62. https://www.prnewswire.com/news-releases/gymboree-agrees-to-sell-play--music-business-to-zeavion-300291667.html
  63. https://gymboreeclasses-dach.com/franchise/
  64. https://www.gymboreeplayfranchise.com/
  65. https://www.gymboreeplayfranchise.com/ourProcess.html
  66. https://sharpsheets.io/blog/gymboree-play-music-franchise-fdd-profits-costs/
  67. https://www.retaildive.com/news/childrens-place-ceo-jane-elfers-exits-interim-chief-mithaq-capital/717790/
  68. https://corporate.childrensplace.com/board-of-directors
  69. https://cases.ra.kroll.com/gym/Home-Index
  70. https://www.mass.gov/doc/fiscal-year-2012-annual-report-1/download
  71. https://ogletree.com/insights-resources/blog-posts/meal-break-violations-cost-a-massachusetts-retailer-almost-500000/
  72. https://www.law360.com/articles/871797/gymboree-to-pay-1-1m-to-distribution-center-workers
  73. https://theintercept.com/2019/03/25/gymboree-bankruptcy-severance-scam/
  74. https://news.bloomberglaw.com/bankruptcy-law/bankrupt-gymboree-workers-3-6-million-settlement-approved
  75. https://www.epi.org/publication/epidemic-wage-theft-costing-workers-hundreds/
  76. https://cases.ra.kroll.com/gymboree/Home-Index
  77. https://www.retaildive.com/news/update-gymboree-exits-bankruptcy/504561/
  78. https://content.next.westlaw.com/Document/Ie86bf370235211e9b3d3a4172d3c042e/View/FullText.html
  79. https://cases.stretto.com/public/241/12142/PLEADINGS/1214208192580000000206.pdf
  80. https://kpmg.com/ca/en/home/services/advisory/deal-advisory/creditorlinks/gymboree.html
  81. https://assets.kpmg.com/content/dam/kpmg/ca/pdf/creditorlinks/gymboree-inc/second-report-of-the-proposal-trustee-dated-february-8-2019.pdf
  82. https://www.milbank.com/en/news/milbank-guides-gemstone-solutions-fka-gymboree-group-through-chapter-11-plan-confirmation.html
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