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The Children’s Place, in search of new ownership, files for bankruptcy
Retail Dive • • business
Key Points:
- The Children’s Place filed for Chapter 11 bankruptcy in New Jersey, aiming to sell the company by the end of the year, with bids due by December 9; its stores and website remain operational during the process.
- The retailer, operating about 500 North American stores and selling through multiple channels including Amazon and international markets, faces over $881 million in debt against $742 million in assets.
- Declining demand for value-priced children’s apparel, intensified competition from retailers like Target and Walmart, inflation, and prior financial missteps have contributed to the company’s sustained decline in sales and profitability.
- Nine bids have been received so far, including proposals for ongoing operations and liquidation, with a stalking horse bid expected soon to set a baseline price for competing offers.
- Industry experts anticipate interest from major brand conglomerates in acquiring The Children’s Place and Gymboree brands, with potential bidders including Catalyst Brands, which owns J.C. Penney and other retail chains acquired through bankruptcy.
