The Children's Place filed for Chapter 11 bankruptcy protection Sunday and is seeking to sell substantially all of its assets. The company operates two digital storefronts and 514 North American stores, with distribution in 13 countries through franchise and wholesale partners.
The retailer is soliciting offers from potential buyers by Dec. 9, targeting a deal close by the end of December. Stores and e-commerce sites remain open, and the company plans to continue inventory sales with court approval.
The company reported about $742 million in assets against about $881 million in debts in its bankruptcy filing. Net sales dropped nearly 19% in the second fiscal quarter of 2026 compared to the prior year, driven by lower conversion and a clearance-heavy product mix. The company cited tariff hikes and slower consumer spending as factors in its performance decline.
Interim CEO Muhammad Asif Seemab and Chief Strategy Officer Muhammad Umair stepped down from their roles days before the filing. Both remain on the board. CFO John Szczepanski became acting president and principal executive officer. Seemab is managing director of Mithaq Capital, a Saudi-based firm that took a majority stake in The Children's Place in 2024.
The stock traded around 18 cents per share Monday. Investors should monitor PLCE for updates on the asset sale timeline and buyer interest, as the Dec. 9 bid deadline approaches.