Children's Place weighs bankruptcy, plans to close New Jersey stores and Alabama center
The gist
Children's Place is weighing bankruptcy and filed to close its two dozen New Jersey stores, cutting 732 jobs.
The 57-year-old kids' chain carries over a half-billion dollars in debt.
How it unfolded
- Feb 2024The Children's Place warned of liquidity concerns, with total liquidity expected at approximately $45 million as of Feb. 3, 2024.
- 2024Mithaq Capital became majority shareholder in a change of control; the company also closed more than 250 stores in struggling malls.
- May 2024Muhammad Umair took the helm following the departure of longtime CEO Jane Elfers.
Key terms
- bankruptcy
- A legal process in which a person or business unable to pay debts seeks court protection and reorganization or liquidation.
- liquidation
- The legal process of ending a company and distributing its assets to claimants.
- comparable retail sales
- A retail metric comparing revenue from existing outlets over a period with the same period a year earlier, excluding new or closed stores.
Source: Wikipedia