The Children's Place files for bankruptcy protection: Sales begin and closings loom

The company, which also owns the Gymboree brand, filed for Chapter 11 on Sunday in the U.S. Bankruptcy Court of New Jersey. As part of the process, the company said it’s pursuing a sale of the brand “with the goal of continuing to serve families under new ownership.”

The retailer said it looking to sell “substantially all of its assets” and has already begun talking to potential buyers. The company is asking the court to approve the sale, and interested buyers should submit bids by Dec. 9.

“For nearly 60 years, The Children’s Place has supported growing families with apparel that customers have come to know and love,” Rudy Morando, the company’s co-chief restructuring officer, said in a news release. “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.”

The Children’s Place, which operates 514 brick-and-mortar stores across the U.S., said it would shutter some stores as part of the process.

“We are conducting an ongoing evaluation of our operational footprint and will communicate confirmed decisions as they are made,” the company said.

As of Wednesday, all stores and e-commerce for The Children’s Place and Gymboree remained open, the company said on it’s website, with sales and “deep discounts.” However, any purchases made after Nov. 6 are final sale and cannot be returned.

The company said it expects to continue accepting orders and making deliveries without interruption for now. Gift cards and My Place rewards can still be used for a limited time, subject to court approval. Final redemption date will be announced at a later time.

The Chapter 11 filing comes as the retailer was still expanding quite recently, opening 19 stores in the second quarter this year. In its bankruptcy filing, the company reported about $742 million in assets and $881 million in debts. It also cited inflation and tariffs among factors impacting consumer spending that “have driven a sustained decline in net sales and profitability,” the company said in court documents.