Kids’ clothing retailer The Children’s Place has filed for Chapter 11 bankruptcy and will close some stores to keep the business up and running, new court filings show.
The Children’s Place filed a bankruptcy petition along with 13 affiliated debtors in a New Jersey bankruptcy court on Nov. 8, according to court documents the company sent to USA TODAY. The retailer plans to sell all its assets and said in a news release that it aims to keep the business open.
Stores and Websites Remain Open for Now
In a statement to USA TODAY on Nov. 10, the company said all its stores and e-commerce websites are open, but certain locations must close at some point. The Children’s Place added that it is evaluating its store portfolio, calling the process a difficult decision.
The company has two digital storefronts, 495 retail stores in North America and sells its items through wholesale marketplaces such as Amazon. International franchise and wholesale partners also sell the company’s products in 13 countries.
How Big Are the Debts?
In the court filings, The Children’s Place said it owes more than 10,000 creditors. Bankruptcy court documents show it owes nearly $94 million to 30 of its largest creditors. The company has over $500 million in assets and more than $500 million in liabilities.
The Children’s Place is asking the court to approve the sale, and interested buyers should submit bids by Dec. 9. The sale will be finalized by the end of December 2026. The Children’s Place said it has already begun speaking to potential buyers.
What Happens Next
The Children’s Place has also asked that the U.S. Chapter 11 filings include its Canadian assets.
The company declined to answer questions about what led to the store closures on Nov. 10; however, the retailer said the bankruptcy filing, closures and sale will strengthen the company financially and operationally.
The Children’s Place is seeking court approval to pay employee wages and benefits, honor customer programs and pay vendors. The company said the court will probably approve its efforts at this week’s hearing.
About the Retailer
The Children’s Place was founded in 1969 and is headquartered in Secaucus, New Jersey, about seven miles north of Jersey City. The company said in court documents that it buys clothing from third-party manufacturers and sells them at “value prices” for families with babies, toddlers and children.
Rudy Morando, co-chief restructuring officer of The Children’s Place, said in the news release that the company is trying to “secure the best path forward for The Children’s Place.”
“For nearly 60 years, The Children’s Place has supported growing families with apparel that customers have come to know and love,” Morando said. “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.”
Saleen Martin is a reporter on USA TODAY’s trending team. She is from Norfolk, Virginia – the 757. Email her at [email protected].
Reporting by Saleen Martin, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect
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