The Children's Place files for Chapter 11 bankruptcy and puts the business up for sale

The company filed voluntary Chapter 11 petitions on 8 November with the federal bankruptcy court in New Jersey and plans to sell nearly all of its assets through a section 363 auction under the US Bankruptcy Code, it said. It wants bids by 9 December and aims to complete a sale by the end of December. The petition shows US$881.2 million in debts against US$742.3 million in assets, ROI-NJ reported. Chief financial officer John Szczepanski is acting president, and Rudy Morando is co-chief restructuring officer.

Every store and website is still trading, according to the company's restructuring page. It has asked the court to let it keep "certain customer programs" running and expects its first-day requests to be approved at a hearing this week. Good Morning America reported that the company is urging customers to use gift cards and My Place Rewards while they remain valid. Some stores will close during the case, the company said, but it has not named them and will announce decisions once they are confirmed.

The company has also asked to keep paying wages and benefits and to pay suppliers for anything delivered after the filing. Money owed from before 8 November becomes a claim in the case, handled by the claims agent, Omni Agent Solutions. A WARN notice lodged before the filing said up to 732 jobs in New Jersey could go by 2 February 2027, ROI-NJ reported, citing NJBIZ. A separate request asks for the US case to be recognised in Canada, so the Canadian business can be sold in the same process.

There is a fallback if no buyer appears. Consultants GA Group, Tiger Group and SB360 Capital Partners, working as a joint venture, are handling the discount sales already under way in its stores, and the company's FAQ says the GA Group agreement gives it a route forward if the court process produces nothing better. The company says that is not the result it is working towards.