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The Children's Place

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The Children’s Place Inc.
Company typePublic
IndustryApparel
Founded1969; 55 years ago (1969)
FoundersDavid Pulver
Clinton Clark
HeadquartersSecaucus, New Jersey
Number of locations
about 525[1]
Area served
Worldwide
Key people
Turki S. AlRajhi (Chairman)
ProductsChildren’s apparel and accessories
RevenueDecrease US$1.708 billion (2023)
Decrease −US$1.530 billion (2023)
Decrease −US$1.381 billion (2023)
Total assetsDecrease US$986.28 million (2023)
Total equityDecrease US$158.478 million (2023)
Number of employees
3,300 (2023)
SubsidiariesGymboree
Websitewww.childrensplace.com

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]

History

[edit]
The Children's Place in Manhattan

The company was founded in 1969. It was acquired by Federated Department Stores in 1981.[3] After Campeau Corporation acquired Federated, they sold The Children's Place to a group led by Joseph Sitt in 1988.[4] They became publicly traded on the NASDAQ exchange in 1997 under the ticker symbol PLCE.[citation needed]

The Children's Place had a location in the mall in New York's World Trade Center. This location was eventually destroyed during the September 11 attacks in 2001.[5]

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

[edit]

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.

References

[edit]

Media related to The Children's Place at Wikimedia Commons

  1. ^ "The Children's Place, Inc". D&B Business Directory. Dun & Bradstreet. Retrieved 27 November 2024.
  2. ^ "The Children's Place, Inc. (PLCE) Company Profile & Facts". finance.yahoo.com. Retrieved 27 November 2024.
  3. ^ "Federated Set To Buy Chain". The New York Times. 1981-10-07. ISSN 0362-4331. Retrieved 2018-08-26.
  4. ^ "Federated Division To Be Sold". tribunedigital-chicagotribune. Retrieved 2018-08-26.
  5. ^ https://web.archive.org/web/20010421023017/http://www.panynj.gov/wtc/wtcsfram.HTM [bare URL]
  6. ^ a b c d "Unit of Children's Place that operates Disney Stores files for bankruptcy". nj.com. 2008-03-27. Retrieved 2016-03-04.
  7. ^ a b c Menn, Joseph (23 December 2006). "New ownership turns Disney Stores around". Los Angeles Times. Retrieved December 29, 2016.
  8. ^ "Children's Place to buy US Disney Stores". The Retail Bulletin. October 20, 2004. Retrieved January 5, 2017.
  9. ^ Daniel, Robert (March 27, 2008). "Children's Place's Disney Store unit files Chapter 11". MarketWatch. Retrieved 27 November 2012.
  10. ^ Chmielewski, Dawn C. (September 6, 2011). "Head of Disney Consumer Products group steps down". Los Angeles Times. Retrieved 15 November 2012.
  11. ^ Children's Place names new CEO, The Record, December 11, 2009
  12. ^ "The worst shirts for girls". 7 August 2013.
  13. ^ Silberstein, Nicole (2024-02-15). "Mithaq Takes Majority Stake in Children's Place, Offers Financing as Retailer Works to Avoid Bankruptcy". Retail TouchPoints. Retrieved 2024-11-26.
  14. ^ Velasco, E. R. (2024-02-24). "The Children's Place: How To Buy A Company Without M&A Fees". the deep dive. Retrieved 2024-11-26.
  15. ^ "Children's Place Soars After Mithaq Capital Builds 54% Stake".
  16. ^ MarketScreener (2024-02-29). "The Children's Place Announces $78.6 Million of Interest-Free Unsecured New Financing to be Provided by Mithaq Capital". www.marketscreener.com. Retrieved 2024-11-26.
  17. ^ "The Children's Place Announces $90 Million in New Unsecured Financing Provided by Majority Shareholder Mithaq Capital". GlobeNewswire News Room. 2024-04-17. Retrieved 2024-11-26.
  18. ^ Delesline III, Nate (June 3, 2024). "Children's Place CEO Jane Elfers Steps Down". www.retaildive.com.
  19. ^ "Chairman's Letters | The Children's Place Corporate Website". corporate.childrensplace.com.
  20. ^ "The Children's Place, Inc. Issues Chairman's Letter to Shareholders".
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