Children’s Place files for bankruptcy protection, seeks buyer

Summary

• The Children's Place filed for Chapter 11 bankruptcy protection on Sunday.
• The company seeks to sell substantially all assets & aims to close a deal by the end of December after seeking offers by Dec. 9.
• The retailer operates two digital storefronts, 514 North American stores, & distribution in 13 countries through franchise & wholesale partners.
• Brands include The Children's Place & Gymboree.
• Recent performance declines resulted from tariff hikes & slower consumer spending.
• Stores & e-commerce sites remain open while the company plans to continue inventory sales with court approval.
• Co-chief restructuring officer Rudy Morando stated the company is committed to an efficient & transparent sale process.
• Interim CEO Muhammad Asif Seemab & Chief Strategy Officer Muhammad Umair stepped down days before the filing but will remain on the board.
• CFO John Szczepanski assumed the role of acting president & principal executive officer.
• Seemab serves as managing director of Saudi-based Mithaq Capital, which acquired a majority stake in 2024.
• The company reported $742 million in assets against $881 million in debts.
• Net sales dropped nearly 19% in the second fiscal quarter of 2026 compared to the prior year.
• The company cited lower conversion rates, a clearance-heavy mix, & tough comparisons to a prior-year period with elevated back-to-school demand.
• Stock prices have plummeted in recent years & traded around 18 cents per share on Monday.