The Children's Place
{{Short description|Children's clothing retailer}}
{{Infobox company
| name = The Children’s Place Inc.
| logo = The_Children's_Place_Logo.svg
| image = The Children's Place, Valdosta.JPG
| image_size = 250px
| image_caption = The Children's Place in Valdosta, Georgia
| type = Public
| traded_as = {{ubl|{{NASDAQ|PLCE}}}}
| foundation = {{start date and age|1969}}
| founders = David Pulver
Clinton Clark
| location = Secaucus, New Jersey
| num_employees = 3,300 (2023)
| industry = Apparel
| area_served = Worldwide
| key_people = Turki S. AlRajhi (Chairman)
| products = Children’s apparel and accessories
| revenue = {{nowrap|{{decrease}} US$1.602billion}} (2024)
| operating_income = {{nowrap|{{decrease}} −US${{color|red|83.7}} million}} (2024)
| net_income = {{nowrap|{{decrease}} −US${{color|red|154.5}} million}} (2024)
| assets = {{nowrap|{{decrease}} US$800.3 million}} (2024)
| equity = {{nowrap|{{decrease}} −US${{color|red|9}} million}} (2024)
| subsid = Gymboree
| homepage = {{url|http://www.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.{{Cite web |title=The Children's Place, Inc. (PLCE) Company Profile & Facts |url=https://finance.yahoo.com/quote/PLCE/profile/ |website=finance.yahoo.com |access-date=27 November 2024|language=en-US}}
History
File:The Children's Place Storefront (48089818762).jpg]]
The company was founded in 1969. It was acquired by Federated Department Stores in 1981.{{Cite news| issn = 0362-4331| title = Federated Set To Buy Chain| work = The New York Times| access-date = 2018-08-26| date = 1981-10-07| url = https://www.nytimes.com/1981/10/07/business/federated-set-to-buy-chain.html}} After Campeau Corporation acquired Federated, they sold The Children's Place to a group led by Joseph Sitt in 1988.{{Cite web| title = Federated Division To Be Sold| work = tribunedigital-chicagotribune| access-date = 2018-08-26| url = https://www.chicagotribune.com/1988/11/10/federated-division-to-be-sold/}} They became publicly traded on the NASDAQ exchange in 1997 under the ticker symbol PLCE.{{Citation needed|date=March 2020}}
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.https://web.archive.org/web/20010421023017/http://www.panynj.gov/wtc/wtcsfram.HTM {{Bare URL inline|date=August 2024}}
Between 2004 and 2007, the company owned and operated 335 Disney Stores through a subsidiary Hoop Holdings/Hoop Retail Stores LLC.{{cite web|url=http://www.nj.com/business/index.ssf/2008/03/unit_of_childrens_place_that_o.html|title=Unit of Children's Place that operates Disney Stores files for bankruptcy|publisher=nj.com |date=2008-03-27 |access-date=2016-03-04}} Disney sold the chain for the cost of inventory to Children's Place subsidiary Hoop Holdings, plus a 15-year licensing agreement.{{cite news|last1=Menn|first1=Joseph|title=New ownership turns Disney Stores around|url=https://www.latimes.com/archives/la-xpm-2006-dec-23-fi-disneystores23-story.html|access-date=December 29, 2016|work=Los Angeles Times|date=23 December 2006}} 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.{{cite news|title=Children's Place to buy US Disney Stores|url=https://www.theretailbulletin.com/news/childrens_place_to_buy_us_disney_stores_20-10-04/|access-date=January 5, 2017|work=The Retail Bulletin|date=October 20, 2004}} 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.
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.
In June 2007, the company began negotiations to sell the rights back to The Walt Disney Company. On March 26, 2008, Hoop Holdings/Hoop Retail Stores LLC and related subsidiaries of TCP that operated Disney Store retail locations filed for bankruptcy. 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.{{cite news|last=Daniel|first=Robert|title=Children's Place's Disney Store unit files Chapter 11|url=http://www.marketwatch.com/story/disney-store-unit-of-retailer-files-for-bankruptcy-protection?dist=hplatest|access-date=27 November 2012|newspaper=MarketWatch|date=March 27, 2008}} On May 1, 2008, 231 Disney Stores in North America once again became the property of Disney, operating under the Disney Consumer Products arm.{{cite news|last=Chmielewski|first=Dawn C.|title=Head of Disney Consumer Products group steps down |url= http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/09/head-of-disney-consumer-products-group-steps-down.html |access-date=15 November 2012|newspaper=Los Angeles Times |date=September 6, 2011}}
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.{{citation|url=http://www.northjersey.com/news/121009_Childrens_Place_names_new_CEO.html|title=Children's Place names new CEO |date=December 11, 2009 |publisher=The Record}}
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!"{{Cite web|url=http://www.salon.com/2013/08/06/the_worst_shirts_for_girls/|title = The worst shirts for girls|date = 7 August 2013}}
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.{{Cite web |last=Silberstein |first=Nicole |date=2024-02-15 |title=Mithaq Takes Majority Stake in Children's Place, Offers Financing as Retailer Works to Avoid Bankruptcy |url=https://www.retailtouchpoints.com/topics/market-news/childrens-place-looks-for-new-financing-as-losses-widen |access-date=2024-11-26 |website=Retail TouchPoints |language=en-US}}{{Cite web |last=Velasco |first=E. R. |date=2024-02-24 |title=The Children's Place: How To Buy A Company Without M&A Fees |url=https://thedeepdive.ca/the-childrens-place-how-to-buy-a-company-without-ma-fees/ |access-date=2024-11-26 |website=the deep dive |language=en-US}}{{Cite news |title=Children's Place Soars After Mithaq Capital Builds 54% Stake |url=https://news.bloomberglaw.com/bankruptcy-law/childrens-place-soars-after-mithaq-capital-builds-54-stake}}
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.{{Cite web |last=MarketScreener |date=2024-02-29 |title=The Children's Place Announces $78.6 Million of Interest-Free Unsecured New Financing to be Provided by Mithaq Capital |url=https://www.marketscreener.com/quote/stock/THE-CHILDREN-S-PLACE-INC-10481/news/The-Children-s-Place-Announces-78-6-Million-of-Interest-Free-Unsecured-New-Financing-to-be-Provided-46061639/ |access-date=2024-11-26 |website=www.marketscreener.com |language=en-US}}
In April, the company announced $90 million in new unsecured financing provided by Mithaq.{{Cite web |date=2024-04-17 |title=The Children's Place Announces $90 Million in New Unsecured Financing Provided by Majority Shareholder Mithaq Capital |url=https://www.globenewswire.com/news-release/2024/04/17/2864445/7632/en/The-Children-s-Place-Announces-90-Million-in-New-Unsecured-Financing-Provided-by-Majority-Shareholder-Mithaq-Capital.html |access-date=2024-11-26 |website=GlobeNewswire News Room |language=en}}
Elfers stepped down as CEO on May 20, 2024, receiving a $3.75 million payout to exit the company.{{Cite web |last=Delesline III |first=Nate |date=June 3, 2024 |title=Children's Place CEO Jane Elfers Steps Down |url=https://www.retaildive.com/news/childrens-place-ceo-jane-elfers-exits-interim-chief-mithaq-capital/717790/#:~:text=The%20Children's%20Place%2C%20Inc.,search%20for%20a%20permanent%20CEO. |access-date= |website=www.retaildive.com |language=en}}
Turki S. AlRajhi, Chairman and CEO of Mithaq and Chairman of The Children’s Place, outlined background and strategy for The Children's Place in a letter to The Children’s Place shareholders on May 24, 2024.{{Cite web |title=Chairman's Letters {{!}} The Children's Place Corporate Website |url=https://corporate.childrensplace.com/chairmans-letters |access-date= |website=corporate.childrensplace.com |language=en}}{{Cite news |title=The Children's Place, Inc. Issues Chairman's Letter to Shareholders |url=https://finance.yahoo.com/news/children-place-inc-issues-chairman-121600250.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAGyKj2ztPsTVGaLYp2HPPR5-9SWRFTF0yuymrkIiB4Htp4ywtKh2qC869ScmJ0i-bN5LUpHKfzCVGVGBb5AUw2UZH6KfGV0OHqKkKwYxhnrU61ZyY5Bg7g9-2fMmcWwA9UsDM0eSHaLjfC-u_9lD3KjlyyeCEXYjo4WGRfzVOmAy}}
The Children’s Place opened its first Gymboree store at Westfield Garden State Plaza in Paramus on Nov. 20, 2024.{{Cite web |last= |first= |date= |title=Gymboree stages comeback at Westfield Garden State Plaza (photos) |url=https://njbiz.com/gymboree-stages-comeback-at-westfield-garden-state-plaza-photos/ |access-date=2025-03-22 |website=NJBIZ |language=en-US}}
Operations
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
{{Commons category-inline|The Children's Place}}
{{reflist}}
{{Authority control}}
{{DEFAULTSORT:Childrens Place, The}}
Category:Clothing retailers of the United States
Category:Children's clothing retailers
Category:Companies based in Hudson County, New Jersey
Category:American companies established in 1969
Category:Clothing companies established in 1969
Category:Retail companies established in 1969
Category:Private equity portfolio companies
Category:Companies listed on the Nasdaq
Category:1969 establishments in New Jersey