The Children’s Place files Chapter 11, plans to sell assets
The Children’s Place Inc. has filed for bankruptcy as it seeks a buyer to remain in business after a turnaround plan backed by Saudi investment capital failed to take hold.
The children’s specialty retailer, whose portfolio include its namesake, Gymboree and other kids’ brands, filed for Chapter 11 relief with plans to sell substantially all of its assets. The company, which had 514 stores as of Aug. 1, said it is discussions with multiple parties regarding potential transactions that would allow it to continue as a going concern.
The Children's Place has set a deadline of Dec. 9, 2026, for parties to submit bids. It expects to complete the court-supervised sale process by the end of December. Stores and e-commerce sites remain open during the proceedings.
The company said it intends to continue its ongoing inventory sales across its store fleet designed to enhance liquidity and maintain operational flexibility. To facilitate the ongoing sales. it has entered into a consulting agreement with a joint venture of GA Group, Tiger Group and SB360 Capital Partners.
The retailer is also seeking recognition of the U.S. Chapter 11 proceedings in Canada to include its Canadian assets and operations in the sale process.
The Children’s Place has struggled with falling sales in recent years. ( In its most recent quarter, net sales decreased 18.9%, to $241.8 million.) After warning of liquidity concerns in February 2024, Mithaq Capital SPC, a Saudi family investment firm, became its majority shareholder.
[READ MORE: Children’s Place boosts liquidity with additional funding from Saudi investment firm]
Last week, the company revealed in a regulatory filing that interim CEO Muhammad Asif Seemab had exited the company, along with several other top executives. Seemab is the managing director of Mithaq Capital.
“Today’s announcement marks an important step in our efforts to secure the best path forward for The Children’s Place,” said Rudy Morando, co-chief restructuring officer of The Children’s Place, which is based in Secaucus, N.J. “For nearly 60 years, The Children’s Place has supported growing families with apparel that customers have come to know and love. We recognize the significance of this development for our employees, customers, vendors, and other partners, and we are committed to conducting an efficient and transparent sale process. “
Advisors
White & Case LLP is serving as legal counsel, BRG is serving as financial advisor and Cascadia Capital is serving as investment banker. Cole Schotz P.C. is serving as New Jersey local counsel, Omni Agent Solutions, Inc. is serving as claims and noticing agent, and C Street Advisory Group is serving as strategic communications advisor for the Company.
