Children's clothing retailer The Children's Place has filed for chapter 11 bankruptcy protection, it said Sunday.
The company is looking to sell substantially all of its assets and is seeking offers from potential buyers by Dec. 9, with a goal to close a deal by the end of December.
The retailer, whose brands include The Children's Place and Gymboree, says it operates two digital storefronts and 514 North American stores, and has distribution in 13 countries through franchise and wholesale partners. The company's performance has taken a hit in recent years from tariff hikes and slower consumer spending, among other factors.
Its stores and e-commerce sites remain open for now, and the company is planning to continue its ongoing inventory sales with court approval.
"For nearly 60 years, The Children's Place has supported growing families with apparel that customers have come to know and love. We recognize the significance of this development for our employees, customers, vendors, and other partners, and we are committed to conducting an efficient and transparent sale process," said Rudy Morando, co-chief restructuring officer of The Children's Place. "In the meantime, we remain focused on serving the families who have trusted The Children's Place for generations."
This move comes days after interim Children's Place CEO Muhammad Asif Seemab and Chief Strategy Officer Muhammad Umair stepped down from their roles . Seemab and Umair will both remain on the company's board. CFO John Szczepanski took on the role of acting president and principal executive officer.
Seemab is also managing director of Saudi-based Mithaq Capital, which took a majority stake in The Children's Place in 2024 when the company was facing financial trouble.
Even with support from the investors, the company has not been able to significantly improve its financial outlook. In its bankruptcy filing , the company reported about $742 million in assets, compared to about $881 million in debts.
In the second fiscal quarter of 2026 , its most recently reported quarter, the company's net sales dropped nearly 19% from the same period the year prior. At the time, Seemab said in a news release that during the quarter the company was "stabilizing our customer file" and "driving traffic to our stores and websites," and saw "lower conversion, combined with a very clearance-heavy mix."
He also pointed to tough comparisons to the prior-year period, due in part to back-to-school shopping demand that "was uniquely elevated ... ahead of anticipated tariff price increases."
The Children's Place stock has plummeted in recent years and was trading around 18 cents per share on Monday.
