The Children's Place files Chapter 11 to pursue a sale
The Children's Place filed for Chapter 11 on November 8 in New Jersey to oversee a sale of its assets. Bids are due December 9, with the process expected to end by December 2026; stores and e-commerce remain open.
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Key takeaways
The Children's Place filed Chapter 11 in the District of New Jersey on November 8 to pursue a sale.
Bids are due December 9, with the sale process expected to finish by the end of December 2026.
Stores and e-commerce sites remain open, and the company is pursuing a new term loan from existing secured lenders, subject to court approval.
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The Children's Place filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of New Jersey on Sunday, November 8, to carry out a court-supervised sale of substantially all of its assets, the Secaucus, New Jersey-based children's apparel retailer said in a release. The company said its stores and e-commerce sites remain open and continue to serve customers.
Bids are due December 9, and the company expects to complete the sale process by the end of December 2026. The Children's Place said it is in discussions with multiple parties regarding potential transactions.
We are committed to conducting an efficient and transparent sale process. — Rudy Morando, co-chief restructuring officer, The Children's Place
Financing and wind-down support
The company said it plans to enter into a new term loan facility provided by its existing secured lenders to fund the process, subject to court approval. It has also filed motions to continue paying employee wages and benefits. A joint venture of GA Group, Tiger Group and SB360 Capital Partners will run inventory sales across the store fleet, and the company said certain store closures will be necessary during the Chapter 11 process. The Children's Place is also seeking recognition of the U.S. proceedings in Canada to include its Canadian assets and operations.
White & Case is serving as legal counsel, BRG as financial advisor and Cascadia Capital as investment banker, according to the release.
Pressure on sales and the balance sheet
Retail Dive reported that the company's court papers cite debts of more than $881 million and assets of about $742 million. The filing says tariffs, inflation, competition and weaker demand for value children's apparel have driven a sustained decline in net sales and profitability, Retail Dive reported. The outlet said the company has received nine proposals that are not currently actionable, and that a stalking horse bid is expected in about a week.
In its most recent quarterly results, for the period ended August 1, The Children's Place reported net sales of $241.8 million, down 18.9% from a year earlier, and a net loss of $31.0 million. It operated 514 stores in North America at the end of that quarter. Mithaq Capital holds a majority stake in the retailer, according to Retail Dive.
Sources
- The Children's Place Commences Process to Effectuate Value-Maximizing Sale Transaction ↗ · The Children's Place
- The Children's Place, in search of new ownership, files for bankruptcy ↗ · Retail Dive
- The Children's Place Reports Second Quarter 2026 Results ↗ · The Children's Place
- The Children's Place shakes up leadership amid bankruptcy rumors ↗ · Retail Dive
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