The Gymboree Corporation Announces Management Changes and Restructuring

By: Gymboree | 2 Shares 189 Reads

SAN FRANCISCO, CALIFORNIA (Thursday, February 03, 2005) - The Gymboree Corporation (NASDAQ: GYMB) announced today that it has reorganized its corporate operations as part of its ongoing effort to operate more efficiently. This reorganization includes the promotion of certain key executives as well as a reduction in the overall size of the Company's corporate workforce.

Matt McCauley has been promoted to the position of Senior Vice President/General Manager. Matt will oversee Merchandise, Planning and Brand Services for Gymboree, Janie and Jack, and Janeville as well as the Company's online stores.

"Matt is an incredible talent who has been instrumental in driving improvements in our inventory productivity," stated Lisa Harper, The Gymboree Corporation's chairman and chief executive officer. "Matt has worked closely with the business leaders and we expect that his new position will result in a more coordinated approach as we streamline operations."

Also, in recognition of her achievements in leading the growth of Janie and Jack, Laura Willensky has been promoted to Vice President/General Merchandise Manager. In addition to her responsibilities at Janie and Jack, Laura will be managing Design and Merchandise for Janeville. Laura will continue to report to Kip Garcia who now has merchandising responsibility for all brands.

"Laura is a gifted merchant with a proven ability to deliver new concepts," said Lisa Harper. "I'm confident that Laura's talents will serve Janeville well and I look forward to working closely with her to develop this exciting brand."

Finally, the Company announced that it has eliminated a number of positions in its corporate office. The Company expects that this restructuring will result in a severance charge of approximately $550,000 in the first quarter of Fiscal 2005.

About The Gymboree Corporation

The Gymboree Corporation's specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of January 29, 2005, the Company operated a total of 648 stores: 579 Gymboree® retail stores (551 in the United States and 28 in Canada), 55 Janie and Jack® retail shops and 14 Janeville™ stores in the United States. The Company also operates online stores at gymboree.com and janieandjack.com, and offers directed parent-child developmental play programs at 528 franchised and company-operated centers in the United States and 26 countries.

Forward-Looking Statements

The foregoing paragraphs contain forward-looking statements relating to anticipated restructuring charges. These are forward looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect The Gymboree Corporation's expectations as of February 3, 2005. The Gymboree Corporation undertakes no obligation to update the information provided herein.