From the outset, Bain Capital was smitten with Gymboree Corp. The private equity firm was convinced the children’s apparel retailer was recession-proof -- a great brand with lots of growth potential. So in 2010, Bain outbid shops including Apollo Global Management LLC to acquire the company for the hefty sum of $1.7 billion.
Seven years later, on the eve of a bankruptcy filing that people
familiar with the matter have said could come from Gymboree as soon as
June, Bain executives seem reluctant to give up on their big bet.
They’ve snatched up Gymboree bonds as a way to retain a strong position
in any revival, according to a person familiar with the matter. And just
last week the company named a new chief executive officer with deep
retail experience, who is charged with formulating a turnaround
. . . more