Children's Place completes Disney Stores deal with Walt Disney Co.

SECAUCUS, N.J. The Walt Disney Co. once again owns its Disney Store North America business. The Children's Place Retail Stores announced today that its subsidiary Hoop Holdings successfully completed the transition of the business and related assets to Disney Co. affiliates.

The Children's Place will provide transitional support services for up to six months and estimates that it will incur cash exit costs of approximately $50 million. The company expected costs to range from $50 million to $100 million.

"We are pleased to have completed this transaction successfully, expeditiously and at the low end of our previously stated exit cost range," stated Chuck Crovitz, interim ceo of The Children's Place. "This event marks a major milestone for both The Children's Place and our Hoop subsidiaries. For The Children's Place, we can once again focus exclusively on building our core namesake brand and driving the business forward. For Hoop, the transfer of the DSNA business back to Disney maximizes the return to creditors, enables a substantial portion of the chain to continue operating and is in the best interest of Hoop's suppliers, landlords, creditors and others."

In the deal, Disney acquired approximately 220 Disney Stores in the United States and Canada and obtained the right to conduct an orderly wind-down and closure of approximately 98 U.S. Disney Stores in two stores in Canada.

"The Disney Stores can play a vital role in touching the millions who cross their thresholds," said Andy Mooney, chairman of Disney Consumer Products. "With the reach of a global retail chain, we will be better able to take advantage of our franchises."