Abstract: An apparatus for refolding a tapered, transversely sealed, gussetted bag into a gussetted square bottom bag, comprising: opening means whereby the wall portions are formed into distinct walls having a generally rectangular configuration; a rotating main drive assembly; an expandable rectangularly shaped member mounted to said rotating assembly; gripping means mounted to said rotating assembly for pulling said bag, open end first, around said rectangularly shaped member; means for expanding said member as said bag is pulled around said member thereby forming a rectangularly shaped bag bottom; means for gussetting said side walls toward each other in a plane generally parallel to said seal; and means for gusseting said rectangularly shaped bag bottom in a plane generally perpendicular to said seal.