children’s clothing retail store Children’s Place announced Sunday that it has filed for Chapter 11 bankruptcy protection.
The company is considering selling substantially all of its assets and is seeking offers from potential buyers by Dec. 9, with the goal of completing the transaction by the end of December.
The retailer, whose brands include The Children’s Place and Gymboree, says it operates two digital stores and 514 stores in North America, with distribution in 13 countries through franchise and wholesale partners. The company’s performance has been hit hard in recent years by, among other things, rising tariffs and sluggish consumer spending.
Stores and e-commerce sites remain open for now, and the company plans to continue selling inventory subject to court approval.
“For nearly 60 years, The Children’s Place has supported growing families with apparel that our customers know and love. We recognize the importance of this development to our employees, customers, vendors, and other partners, and we are committed to implementing an efficient and transparent sales process,” said Rudy Morando, co-restructuring director for The Children’s Place. “In the meantime, we remain focused on serving the families who have trusted The Children’s Place for generations.”
The move comes days after Children’s Place’s interim CEO Muhammad Asif Seemab and chief strategy officer Muhammad Umair resigned from their roles. Mr. Seemab and Mr. Umair will both remain on the company’s board of directors. CFO John Szczepanski has been appointed acting president and chief operating officer.
Mr. Seemab is also the Managing Director of Saudi-based Mitak Capital. Mitark Capital acquired a majority stake in Children’s Place in 2024, when the company was facing financial difficulties.
Even with support from investors, the company has not been able to significantly improve its financial outlook. In its bankruptcy filing, the company reported assets of approximately $742 million, compared to debts of approximately $881 million.
In the most recently reported quarter, Q2 FY26, the company’s net sales declined nearly 19% year over year. At the time, Seemab said in a news release that during the quarter, the company “stabilized our customer file” and “driven traffic to our stores and website,” and saw “decreased conversions coupled with significantly higher clearances.”
He also noted that year-over-year comparisons were tough, in part due to back-to-school shopping demand, which had “a unique uptick…in advance of anticipated tariff increases.”
Children’s Place’s stock price has fallen sharply in recent years and was trading at about 18 cents a share on Monday.
