Gymboree

Gymboree's two bankruptcies (2017, 2019) and ultimate liquidation demonstrated how children's apparel retail was being disrupted from multiple directions. The company operated 900+ stores selling children's clothing at premium prices, but couldn't compete with Target's quality improvement, Amazon's convenience, or off-price retailers' treasure-hunt value. Twice-bankrupt, Gymboree became a case study in how private equity ownership can extract value while degrading operations. The mechanism failure was private equity's harvesting strategy. Bain Capital's 2010 buyout loaded Gymboree with $1.7 billion in debt while extracting dividends and fees. The company couldn't invest in e-commerce, store updates, or product development while servicing debt. When mall traffic declined and online competition intensified, Gymboree lacked the resources to respond. The second bankruptcy was particularly brutal—the company emerged from 2017 bankruptcy with reduced debt, then faced accelerating decline that forced liquidation within two years. The Gymboree brand was acquired by Children's Place, which runs it as an online-only operation. The play classes that gave Gymboree its name were sold separately. The company that had built relationships with generations of parents became a brand stripped for parts.