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Gymboree files for bankruptcy in Richmond

Posted at 2:30 PM, Jun 13, 2017
and last updated 2017-06-13 14:34:04-04

RICHMOND, Va. — Local bankruptcy attorneys got a gift Sunday evening all the way from the West Coast.

Gymboree, a San Francisco-based chain of children’s clothing stores, filed for Chapter 11 in Richmond federal court, bringing with it plenty of work for at least a handful of Richmond law firms.

The debt-ridden company is the latest example of large out-of-town corporations planting their bankruptcies in Richmond in recent years, using a court and judges here known to handle complicated bankruptcy cases in a way that’s viewed by many as favorable to debtors.

That bodes well for local attorneys that win work on such cases, which typically last months, if not years.

The lead local attorneys representing Gymboree is a group from the Richmond office of Kutak Rock, including attorneys Michael Condyles, Peter Barrett and Jeremy Williams, according to court records.

They’re working with Chicago-based Kirkland & Ellis, which has had attorneys in Richmond for other out-of-town companies’ filings, including Patriot Coal and energy company Penn-Virginia.

Other local attorneys representing creditors and interested parties include: Tyler Brown and Justin Paget of Hunton & Williams, Dion Hayes of McGuireWoods, and Cullen Drescher Speckhart of Wolcott Rivers Gates.

Despite being based in California, Gymboree controls an LLC that was incorporated in Virginia, which allows it to file in the commonwealth. It put eight of its affiliated corporations into Chapter 11 in Richmond on Sunday.

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