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Gymboree considering sale of certain brands: statement
Posted on Wednesday, 05 December 2018 10:48
San Francisco-based children’s apparel retailer Gymboree has decided to undertake a strategic review of certain brands in a move which could lead to a sale of operations and has appointed Stifel and Berkeley Research to advise on the process.
Reuters picked up on a statement issued by the company, in which it said the assets which may go on the block under the move include Gymboree, Janie and Jack and Crazy 8.
In addition, the firm has unveiled a number of planned store closures, saying its Crazy 8 locations will be shut down, while the number of Gymboree outlets will be decreased in 2019.
At this point, it is not clear when any asset sale would be likely to take place or how much the company could hope to raise from the divestments.
Gymboree has a history dating back to 1976, although it originally started out offering mother and baby classes, before moving into children’s clothing some ten years later.
The company currently operates 900 stores under its three brand names throughout the US and Canada, while it also has franchised locations worldwide.
It was publicly-traded on Nasdaq until November 2010, when it was acquired by private equity firm Bain for USD 1.80 billion.
According to Zephyr, the M&A database published by Bureau van Dijk, Gymboree last announced an asset sale in June 2016, when it unveiled plans to sell its Gymboree Play Programs subsidiary to Zeavion Holding for USD 127.50 million.
Zephyr shows there have been 21 deals targeting children’s and infant’s clothing store operators announced worldwide since the beginning of 2018.
Of these, the largest was worth EUR 127.66 million and involved Summa International picking up France-headquartered Sofiza at the beginning of October.
This was followed by a USD 47.80 million Series C funding round by US-headquartered InterFocus which was led by Sequoia Capital China, with additional participation from SIG Asia Investment, IDG Capital Partners Beijing and Shanghai Ziyou Investment Management.
© Zephus Ltd