The Children’s Place Files for Chapter 11 and Seeks Sale

The Children’s Place and 13 affiliated entities filed for Chapter 11 bankruptcy protection in New Jersey on Nov. 8, seeking a court-supervised sale of substantially all their assets as the children’s clothing retailer faces falling sales and mounting losses.

The company plans to seek bids by Dec. 9 and aims to complete the sale process by the end of December, subject to court approval. It is negotiating with interested parties on potential deals that would keep the business operating, but court documents also describe liquidation proposals. The outcome of the sale process has not been determined.

The retailer says its stores and online platforms remain open during the bankruptcy case. It expects some stores to close as it reviews its locations, without identifying which stores or how many. The company has also said it intends to continue inventory sales, subject to court approval. Inventory liquidations began Nov. 6, according to a court filing.

Court records put The Children’s Place’s assets at $742.3 million and liabilities at $881.3 million as of Aug. 1. For the three months ended that day, net sales were about $241.8 million, down 18.9% from a year earlier, and the company...