Company to Evaluate a Range of Strategic Options for its Gymboree®, Janie and Jack® and Crazy 8® Brands.
Evaluates Retail Footprint of Gymboree® and Crazy 8® Stores to Best Focus Resources, Improve Operational Efficiency
Stores Open, Fully Stocked and Operating as Usual Through the Holiday Season
Gymboree Group, Inc. (the “Company” or “Gymboree Group”), the children’s retailer known for providing high quality, comfortable clothing and accessories, today announced that it has initiated a comprehensive review of strategic options for its Gymboree®, Janie and Jack® and Crazy 8® brands, which may include a sale or other transactions at the brand level.
In addition, the Company is evaluating the retail footprints of its Crazy 8® and Gymboree® brands with the intention of closing the Company’s Crazy 8® store locations and significantly reducing the number of Gymboree® store locations in 2019. All Gymboree®, Janie and Jack® and Crazy 8® stores are open, fully stocked and ready to delight kids and parents throughout the holiday season.
On November 14, 2018, Shaz Kahng, member of the Company’s Board since September 2017, was appointed Gymboree Group CEO. Kahng brings 30 years of retail leadership experience, and was instrumental in leading the successful turnarounds of Lucy Activewear and various Nike business segments. For the past year, she has worked closely with the Gymboree Group management team to revitalize the business, unlock brand value, modernize product offerings and enhance the customer shopping experience. As CEO, Kahng is focused on the ongoing transformation of the Company.
Shaz Kahng, Gymboree Group CEO, said, “The process we announced today is designed to reposition the Company for success by establishing a brand portfolio and store footprint that is optimized for the current retail environment. These strategic initiatives are an important next step as we continue to look for ways to unlock additional value in our brands. We are optimistic about our future as a more streamlined organization that can deliver enhanced, long-term value to its stakeholders. Our team remains focused on delivering the quality children’s clothing and accessories and exceptional service that our customers have come to expect from us.”
There can be no assurance that the Company’s strategic review process for any of its brands will result in a sale transaction or other strategic alternative of any kind. Gymboree Group does not intend to disclose developments or provide updates on the status of this process unless it deems further disclosure is appropriate or required. The Company is proceeding expeditiously but has not fixed a timetable for completion of this review.
Stifel and Berkeley Research Group are serving as the Company’s financial advisors. Milbank, Tweed, Hadley & McCloy LLP is serving as its legal counsel.