The Children's Place, the kids' clothing chain that also owns Gymboree, filed for Chapter 11 bankruptcy protection on Sunday, Nov. 8, and plans to sell itself through the court. Its stores and websites stay open for now, and liquidators are already running inventory sales that can include store-closing sales through the end of February.
The company filed in the U.S. Bankruptcy Court for the District of New Jersey, case No. 26-22682, according to its report to the Securities and Exchange Commission. It is asking buyers to bid by Dec. 9 and expects the sale to close by the end of December, with the stated goal of keeping the business running.
What shoppers should know
The Secaucus, New Jersey, retailer said in its announcement that stores and e-commerce sites "remain open and continue to serve customers," offering "deep discounts."
Those discounts come from a liquidation deal. On Nov. 3 the company hired a joint venture of Tiger Capital Group, SB360 Capital Partners and GA Retail Solutions to sell merchandise and store fixtures in its U.S. and Canadian locations and online. The sales run from Nov. 6 through Feb. 28, 2027, unless they end early or are extended, and the filing says they include "inventory liquidation and store-closing sales." It does not say how many stores will close or which ones.
The company has asked the court to let it keep "customer programs" going, along with paying employees and vendors. The filings do not spell out which programs that covers, so gift card holders and anyone planning a return should check the company's current policy before relying on it.
What happens next
A first-day hearing on those requests is expected this week. The company also plans to ask the court to approve its sale process and new financing from its existing lenders. A Canadian court will be asked to recognize the case so Canadian stores can be part of the sale.
| Date | Step |
|---|---|
| Nov. 3 | Liquidation consultants hired |
| Nov. 6 | Inventory sales begin |
| Nov. 8 | Chapter 11 petitions filed in New Jersey |
| Dec. 9 | Requested deadline for bids |
| End of December | Company expects the court-supervised sale to close |
| Feb. 28, 2027 | Inventory sales end unless extended |
The liquidators get 2.5% of merchandise sales and 15% of fixture and equipment sales, under a budget of about $34.1 million for their expenses, the filing shows.
