The Children’s Place is a retailer of clothing for children. It sells its products primarily under its proprietary brands The Children’s Place, Gymboree, Sugar & Jade, PJ Place and Crazy 8. The company has about 525 stores in the U.S., Canada and Puerto Rico, and also sells via two online outlets and through five franchise partners in 15 countries. Its product line includes tops, skirts, dresses, jackets, shoes, bottoms, sleepwear and backpacks. The Children’s Place is headquartered in Secaucus, New Jersey, U.S.[2]
Between 2004 and 2007, the company owned and operated 335 Disney Stores through a subsidiary Hoop Holdings/Hoop Retail Stores LLC.[6] Disney sold the chain for the cost of inventory to Children's Place subsidiary Hoop Holdings, plus a 15-year licensing agreement.[7][6] Mario Ciampi, senior vice president of store development and logistics, was named Hoop/Disney Store North America president. The company agreed to pump $100 million in operation upgrades and remodeling.[8] Under the licensing agreement, a "royalty holiday" period existed until October 2006 to allow revamping of the stores. The royalty thereafter was 5% of store sales, while online sales get Disney a 9% to 10% royalty. Hoop Holdings was able to write off the cost ($48 million) of the equipment and property received in the purchase.[7]
Hoops saw progress with its strategy as open stores in 2006 for 11 months saw 15% increase in sales assisted by a better Disney box office results and the Disney Channel hit High School Musical. A store website would be up and running in April 2007.[7]
In June 2007, the company began negotiations to sell the rights back to The Walt Disney Company.[6] On March 26, 2008, Hoop Holdings/Hoop Retail Stores LLC and related subsidiaries of TCP that operated Disney Store retail locations filed for bankruptcy.[6] Hoop obtained from Wells Fargo $35 million of debtor-in-possession financing and appointed Perry Mandarino of Traxi LLC, the Manhattan financial-restructuring company, as chief restructuring officer.[9] On May 1, 2008, 231 Disney Stores in North America once again became the property of Disney, operating under the Disney Consumer Products arm.[10]
On December 11, 2009, The Children's Place announced the appointment of former Lord & Taylor CEO Jane T. Elfers as president and chief executive officer (CEO) of the company, effective January 4, 2010.[11]
In the summer of 2013, the store withdrew a T-shirt from the stores with four options for "My best subjects" including "Shopping, Music, Dance and Math." While shopping, music, and dance were checked, math was left unchecked because the T-shirt stated "Nobody’s perfect!"[12]
Mithaq Capital of Saudi Arabia took a majority stake in The Children’s Place in February 2024 after the company said it was experiencing liquidity problems.[13][14][15] The Children's Place announced a financing agreement with Mithaq to provide $78.6 million of interest-free, unsecured and subordinated term loans to strengthen the company’s liquidity position.[16] In April, the company announced $90 million in new unsecured financing provided by Mithaq.[17]
Elfers stepped down as CEO on May 20, 2024, receiving a $3.75 million payout to exit the company.[18] Turki S. AlRajhi, chairman and CEO of Mithaq, outlined its background and strategy for The Children's Place in a letter to The Children’s Place shareholders on May 24, 2024.[19][20]
Operations
Most of The Children's Place stores are located in and around regional malls, but also include some strip shopping centers, outlets, and street stores. The majority of their stores are small, traditional mall stores, although some Children's Place outlets are in a big box format.
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