By Pat HolohanKids’ clothing retailer Gymboree has turned to bankruptcy for a chance to reorganize and keep open most of its 1,300 stores. Gymboree is new to Chapter 11, but the story behind its financial woes is not. American Apparel liquidated earlier this year in its second Chapter 11 proceeding after its previous reorganization failed, and RadioShack went through the same process. The proposed reorganization plan, backed by those creditors, would provide financing to support Gymboree’s bankruptcy case and post-bankruptcy operations, all while eliminating approximately $1 billion of its $1.1 billion in funded debt. In exchange for that financing, the company plans to hand over the majority of its stock to those lenders.

Source: Forbes June 13, 2017 13:30 UTC