Dive Brief:

• Kids apparel retailer Gymboree Corp. reported a 10% drop in same-store sales as it, like other retailers, is battling declining mall traffic and subdued demand.

• The company was bought four years ago in a $1.8 billion leveraged buyout by private equity firm Boston-based Bain Capital Partners, piling the retailer with debt.

• The San Francisco-based retailer has not turned a profit for three years, according to calculations by Bloomberg.

Dive Insight:

Bain Capital has a decidedly mixed record in its operation of the retailers it has acquired, and Gymboree’s situation since being bought out by the private equity firm is a classic example. The retailer is now loaded with debt as it faces falling demand for children's clothing along with declining mall traffic.