CEO out at Children's Place
The longtime chief executive of The Children's Place had departed the company.
The children’s apparel retailer said that president, board member and CEO Jane Elfers, who has led the company, since 2010, has departed under "mutual agreement." Muhammad Umair has been appointed as president and interim CEO, effective May 20.
In an SEC filing, Children's Place said it had entered into a separation agreement with Elfers that included a separation payment of $3.75 million.
Interim CEO Umair joined the Children's Place board in February of this year. Prior to that, he was a senior advisor for Origin Funding Partners, a global trade finance fund, where he was responsible for credit, recovery and due diligence. Before joining Origin, Umair had been an investment adviser at AMD Holding in Saudi Arabia since 2016.
The CEO change comes as the retailer has been struggling financially. In April, The Children’s Place received a second loan from its majority shareholder, Mithaq Capital SPC. (Umair was one of four people Mithaq had nominated who Children’s Place appointed to its board.)
Since February, Children’s Place has received $168.6 million in funding from Mithaq, composed of the recent $90 million term loan and a previously announced $78.6 million in interest-free, unsecured and subordinated term loan funding.
Prior to joining Origin, Umair held positions in various organizations, including head of advisory at Armacom and senior auditor at Ernst & Young. He has more than 17 years of experience in the fields of finance and investment management.
“I extend my heartfelt gratitude to the board of directors for putting its trust and confidence in my leadership," stated Umair. "The Children’s Place and our portfolio of brands have a strong connection to our customers, and I look forward to leveraging the many opportunities ahead in the children’s apparel retail segment.”
“My focus will be to foster growth through innovation, deliver exceptional value to our customers and drive returns for shareholders,” said Umair.
The Children’s Place's global retail and wholesale network includes more than 500 stores in North America, four e-commerce sites, wholesale marketplaces and distribution in 16 countries through six international franchise partners.
The company designs, contracts to manufacture, and sells apparel, accessories and footwear predominantly at value prices, primarily under its proprietary brands: The Children’s Place, Gymboree, Sugar & Jade and PJ Place.