Children’s Place seeks buyer in Chapter 11 bankruptcy

The company said its stores and e-commerce sites will remain open for now. With court approval, it plans to continue ongoing inventory sales. The retailer operates two digital storefronts and 514 stores in North America, and distributes its products in 13 countries through franchise and wholesale partners. Its brands include The Children’s Place and Gymboree.

The filing puts the company’s financial strain into figures: it reported about $742 million in assets and about $881 million in debts. Net sales in the second fiscal quarter of 2026, its most recently reported quarter, fell nearly 19% from a year earlier. The company has cited tariff increases and slower consumer spending among factors weighing on performance.

In a statement, co-chief restructuring officer Rudy Morando said the company was committed to an “efficient and transparent sale process” and would continue serving customers while it proceeds. He said The Children’s Place had supported families for nearly 60 years and acknowledged the significance of the bankruptcy for employees, customers, vendors and other partners.

The bankruptcy filing came days after interim CEO Muhammad Asif Seemab and Chief Strategy Officer Muhammad Umair stepped down. Both remain on the board. CFO John Szczepanski became acting president and principal executive officer. Seemab is also managing director of Saudi-based Mithaq Capital, which took a majority stake in the retailer in 2024 as it faced financial trouble.

In a news release on the second-quarter results, Seemab said the company was “stabilizing our customer file” and driving traffic to stores and websites, but had experienced “lower conversion” and a “very clearance-heavy mix.” He also cited difficult comparisons with the prior year, when back-to-school demand was “uniquely elevated” ahead of anticipated tariff-related price increases. The company’s stock, which has fallen sharply in recent years, was trading at around 18 cents per share on Monday.