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Gymboree Corp.

Retailer of Children's Apparel

The Gymboree Corporation is a specialty retailer operating stores selling high-quality apparel and accessories for children under the Gymboree, Gymboree Outlet, Janie and Jack, and Crazy 8 brands, as well as play programs for children under the Gymboree Play and Music brand. The Gymboree Corporation's history begins with the founding of Gymboree Play & Music in 1976, making it one of the oldest companies in its field. The appeal of the Gymboree brand was so broad that in 1986 Gymboree entered the apparel business·designing, manufacturing and retailing unique, high-quality merchandise for children.

BDC Credit Reporter View

Gymboree Corporation is a retailer of children's clothing and has been under=performing since 2013, if the Advantage Data records about BDC investment valuations are to be believed. The Company has public record financial statements so we know that sales are flat or down, Adjusted EBITDA is dropping and debt is very high. There are now 4 BDCs with exposure, as TCP Capital in the quarter ended June joined 3 smaller BDCS with long standing loans to the Company, both senior and subordinated. Values have been written up in recent quarters through June. However, with the 10-25-2016 release of the Company's latest financials, which show a near 50% decrease in EBITDA in the quarter, and a 25% drop in fiscal year EBITDA guidance, the credit trend is down. BDC lenders should fare differently depending in which facility they are invested in should Gymboree be forced to file for bankruptcy. We have a Corporate Rating of 4, meaning that the chances of the Company failing to meet its obligations are high.