Selling shares and partial exit during recovery

Before Gymboree became a cultural icon in the 80s and 90s, it was just one lonely new mom trying to find connection. Joan Barnes started hosting weekly playgroups for parents… and demand exploded. What began as a diversion became a business. Then a franchise. Then a brand everyone seemed to know, with its padded playrooms and parachute games. 

From the outside, it looked like a runaway success: hundreds of locations, glowing press coverage, celebrity buzz. But inside, the franchise model was failing. A potential Hasbro rescue vanished overnight. And Joan—while smiling for the world—was breaking under the pressure.

Then came a major pivot that helped turn Gymboree around. The company was going to survive, but Joan realized she might not. She stepped away for good, to fight for her health. 

In this episode, Joan talks frankly about building Gymboree, losing control of it, and learning some vital lessons about ambition, balance, and humility. 

What You’ll Learn

• The hidden math of franchising: when scale makes you weaker, not stronger
• How—years before social media—Joan used the media as her marketing engine 
• The moment Gymboree nearly died—and the brilliant pivot that saved it
• What it feels like to be celebrated publicly while privately falling apart
• Why “more hustle” can be a trap

Timestamps: 

(Timecodes are approximate and may shift depending on platform.)

• [08:20] “Lonely and isolated”—The new-mom need that sparked Joan’s first playgroup
• [13:43] The early days: parachute games, circle songs, and connecting with other parents
• [16:59] The first, $3,000 investment, and expanding to new venues.
• [23:08] Learning the hard way: “I didn’t even know what franchise meant.” 
• [38:40] Joan discovers her business model has a terrifying Catch-22
• [45:05] A humiliating gut punch: Hasbro calls off a life-saving deal 
• [50:15] The pivot to profitability: play centers + clothing stores
• [1:03:00] Success on the outside, collapse on the inside: panic, addiction, treatment 
• [1:14:17] After Gymboree: yoga studios, recovery, and redefining success

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This episode was produced by Chris Maccini with music composed by Ramtin Arablouei.

It was edited by Neva Grant with research by Rommel Wood.

Our engineers were Jimmy Keeley and Patrick Murray.

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