Children’s Place files for Chapter 11 and seeks buyer
The children’s clothing retailer is seeking bids by Dec. 9 while keeping its stores and websites open for now.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
The Children’s Place has filed for Chapter 11 protection and is looking for a buyer for substantially all of its assets. The Children’s Place bankruptcy filing starts a sale effort with bids due by Dec. 9 and a company target of completing a transaction by the end of December, CNBC reported.
For shoppers, the immediate message is that stores and e-commerce sites remain open for now. The company also plans to continue inventory sales if it receives court approval, according to CNBC.
Are Children’s Place stores and website still open?
Yes, for now. The retailer said its physical stores and online operations would continue as it pursues a buyer, but it has not announced a completed sale or a final outcome for its store network.
The company operates under The Children’s Place and Gymboree brands. It reported having two digital storefronts, 514 North American stores and distribution in 13 countries through franchise and wholesale partners, CNBC said.
What happens next in the sale process?
The company is soliciting offers for substantially all its assets, with Dec. 9 set as the bid deadline. Its aim is to close a deal by year-end, though those dates are targets rather than confirmation that a buyer has been chosen.
The Children’s Place and 13 affiliates sought protection in the Newark, New Jersey, bankruptcy court late on Nov. 9, the New York Post reported. A court filing cited by the newspaper said the company had received nine proposals to acquire some or substantially all of its assets.
Chapter 11 generally provides for a business reorganization, according to the U.S. Courts. The Children’s Place said it will keep stores and e-commerce sites open for now while pursuing the asset sale.
Financial and leadership pressure
The bankruptcy filing listed $742.3 million in assets and $881.3 million in liabilities as of Aug. 1, the New York Post reported. That is a difference of roughly $139 million between reported liabilities and assets.
In its fiscal second quarter of 2026, net sales fell nearly 19% from a year earlier, CNBC reported. The New York Post, citing a court filing, reported that the company had faced declining sales and profitability, promotional and competitive pressure, rising costs and liquidity strain.
The filing follows recent executive changes. Interim Chief Executive Muhammad Asif Seemab and Chief Strategy Officer Muhammad Umair stepped down from their roles but stayed on the board, CNBC reported. Chief Financial Officer John Szczepanski became acting president and principal executive officer.
This story draws on original reporting from CNBC.