BY Fraser Tennant
In the wake of major losses and falling sales, New Jersey-based clothing retailer Children’s Place has voluntarily filed petitions for Chapter 11 bankruptcy protection.
Reporting assets of $742.3m and liabilities of $881.3m as of 1 August 2026, the company and 13 of its affiliates sought protection from creditors in the Newark, New Jersey bankruptcy court. The company is also seeking recognition of the US Chapter 11 proceedings in Canada to include its Canadian assets and operations in the sale process.
In order to maximise value for all stakeholders, the company intends to file a motion requesting approval of a competitive marketing and sale process – designed to elicit the highest or otherwise best bid for the company’s assets with the goal of continuing the company’s business as a going concern and preserving the value of its brands.
The company is requesting parties to submit bids by 9 December 2026, and expects to complete the court-supervised sale process by the end of December 2026. Its stores and e-commerce sites remain open and continue to serve customers.
“This process marks an important step in our efforts to secure the best path forward for The Children’s Place,” said Rudy Morando, co-chief restructuring officer at Children’s Place. “For nearly 60 years, Children’s Place has supported growing families with apparel that customers have come to know and love.”
One of the only pure-play children’s specialty retailers in North America with an omni-channel presence, Children’s Place designs, contracts to manufacture and sells fashionable, high-quality, head to toe outfits predominantly at value prices, primarily under its proprietary brands: ‘The Children’s Place’ and ‘Gymboree’.
To fund its value-maximising restructuring process and go-forward operations, the company plans to enter into a new term loan facility provided by its existing secured lenders.
Subject to court approval, the company intends to continue its ongoing inventory sales across its store fleet designed to enhance liquidity and maintain operational flexibility, while providing families with access to deep discounts on fashionable, high-quality, head to toe outfits.
“We recognise 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,” added Mr Morando. “In the meantime, we remain focused on serving the families who have trusted Children’s Place for generations.”
News: Clothing retailer Children's Place files for bankruptcy, to seek sale