The Gymboree Corporation

Class Dismissed for Gymboree? Peer Analysis Pinpoints Financial Distress
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Gymboree filed for Chapter 11 bankruptcy on June 11th, shortly after defaulting on its debt. This struggling retailer is another example of the ongoing credit risks still percolating across the retail industry. It was also reported that a large portion of Gymboree's unsecured claims may receive nothing.

This Bankruptcy Case Study illustrates the usefulness of the FRISK® score, which accurately identifies risky credits before financial distress becomes a problem. One noteworthy point is that payment data would not have been a reliable predictor of financial distress. Our research shows that large public companies often pay on time up until their bankruptcy filing. This report will also present a timeline of selected news headlines which revealed Gymboree’s heightened bankruptcy risk in advance.

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About Bankruptcy Case Studies

CreditRiskMonitor Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using CreditRiskMonitor’s proprietary FRISK® score, robust financial database, and timely news alerts.

In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. CreditRiskMonitor's proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.

Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.