Youth apparel company The Children’s Place has become the latest major retailer to file for Chapter 11 bankruptcy protection this year, putting its more than 500 North American stores in an uncertain position while the company searches for a buyer.
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The Secaucus, New Jersey-based retailer is seeking to sell all its assets through a court-supervised process after years of financial challenges, and it has already started closing locations to recoup money for investors, it said in a court filing reported by CoStar News.
It did not specify how many locations have or will shutter.
“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,” co-Chief Restructuring Officer Rudy Morando said in a statement to Retail Dive.
In bankruptcy court filings that Retail Dive obtained, The Children’s Place listed $881M in debt and $742M in assets. The company had 514 stores as of Aug. 1. In its second-quarter 2026 results report, the company said it opened 19 new locations during that period.
It noted that its expenses increased substantially during that time because of the additional stores, among other factors like “unfavorable foreign currency exchange movements.”
The Children's Place stated on its website that, for now, its stores and e-commerce sites will remain operational.
In addition to Chapter 11 bankruptcy protection, the company is expecting to secure a debtor-in-possession financing agreement to continue operations while going through the bankruptcy and sales process, according to its website.
The chain’s portfolio is already significantly trimmed down from the 1,117 stores it had in the United States, Canada and Puerto Rico in November 2014.
The company said it has received nine acquisition proposals, six of which involve a potential sale of the business or its intellectual property and three for liquidation, according to CoStar.
The Children’s Place, which also owns Gymboree, is seeking bids by Dec. 9 and expects to complete the court-supervised sale process by year-end.
Other major retailers like Eddie Bauer, Saks Global and Francesca’s have also sought Chapter 11 bankruptcy protection this year, with many of the companies citing declining sales, inflation and e-commerce competition among their reasons.
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