Children’s Place, the Secaucus-based children’s clothing retailer, said it filed for bankruptcy and is seeking a buyer. It plans to eliminate 732 jobs across New Jersey, according to a warning notice filed with the state.
The company filed petitions for Chapter 11 relief on Sunday in United States Bankruptcy Court for the District of New Jersey. It disclosed talks with several companies about potential transactions “that would permit the Company to continue its business enterprise as a going concern and preserve the value of its brands.”
All stores and e-commerce sites will stay open for now, with sales offered at deep discounts, the company said in a press release. At the same time, the company said some store closings will be necessary.
“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,” said Rudy Morando, co-chief restructuring officer. “In the meantime, we remain focused on serving the families who have trusted The Children’s Place for generations.”
Children’s Place has about two dozen stores in New Jersey. That includes Gymboree’s, which it acquired in 2019 through a bankruptcy auction. In September, Children’s Place reported second-quarter sales dropped 19% to $242 million, while its net loss widened to $31 million from $5.4 million a year earlier.
The company disclosed $742 million in total assets and $881 million in total liabilities in its Chapter 11 filing. It is requesting court approval of a competitive sale process “designed to elicit the highest or otherwise best bid for the Company’s assets with the goal of continuing the Company’s business as a going concern and preserving the value of its brands.”
The company seeks bids by Dec. 9 and anticipates completing the sale by the end of December.
White & Case LLP is serving as legal counsel, BRG is serving as financial advisor, 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.
