The Children's Place, which operates the Gymboree and Children's Place clothing brands, filed for chapter 11 bankruptcy protection on Sunday. The company operates 514 North American stores and two digital storefronts.
The retailer plans to sell substantially all of its assets. Potential buyers can submit offers by Dec. 9, with a deal expected to close by the end of December. Stores and e-commerce sites remain open during the sale process, and inventory sales will continue with court approval.
The company reported about $742 million in assets against about $881 million in debts in its bankruptcy filing. Recent performance has declined sharply. In its most recently reported quarter, net sales dropped nearly 19% from the prior year.
Rudy Morando, co-chief restructuring officer, said the company remains "committed to conducting an efficient and transparent sale process" and focused on serving customers. The bankruptcy follows leadership changes, including the departure of CEO Muhammad Asif Seemab and Chief Strategy Officer Muhammad Umair. CFO John Szczepanski became acting president and principal executive officer.
Saudi-based Mithaq Capital took a majority stake in The Children's Place in 2024 when the company faced financial trouble. Despite that investment, the company could not reverse its financial decline. Tariff hikes and slower consumer spending contributed to the retailer's struggles. The stock traded around 18 cents per share on Monday.