The Children’s Place files for bankruptcy with $881 million in debt
The short version
- Its 500 stores stay open while it seeks a buyer by Dec. 9.
- Check your gift cards and rewards balances now, as store-closing sales are underway and rules can change quickly in bankruptcy court.
The Children's Place, the children's apparel retailer, filed for Chapter 11 on Sunday in the U.S. Bankruptcy Court of New Jersey, days after telling regulators that executives who were major financial backers had left. The company lists total debts of over $881 million and total assets of about $742 million, according to court documents cited by Yahoo Finance.
The retailer's 500 stores in North America and its website remain open, though store-closing sales began last week. The goal is to sell the business by the end of the year, with bids due Dec. 9. For nearly 60 years, The Children's Place has supported growing families with apparel that customers have come to know and love, said Rudy Morando, the company's co-chief restructuring officer.
The retailer watched demand for value-priced children's clothing decline in recent years, while inflation, tariffs and competition from Target, Walmart, Amazon and off-price stores squeezed sales and profitability. The Children's Place also made dubious financial decisions following a sales boom in 2021, including buying back shares and adding to its debt load.
Of the 9 bids already received, some proposals involve liquidating assets, while others seek to keep the business running. Discussions are ongoing, and a stalking horse bid is due in about a week. Check your gift cards and rewards balances now, as store-closing sales are underway and rules can change quickly in bankruptcy court. Even 500 stores can disappear faster than a toddler's ice cream on a hot July afternoon.
Figures as reported by Yahoo Finance.
