The Children's Place Files for Chapter 11 Bankruptcy

The Children's Place, Inc. filed for Chapter 11 bankruptcy protection on November 8, 2026, in a Newark, New Jersey, court. The parent company of The Children's Place and Gymboree brands intends to sell substantially all of its assets, setting a bid deadline for December 9 with the goal of closing a deal by the end of the month.

As of August 1, the retailer reported approximately $742 million in assets against $881 million in liabilities. The company's financial decline was driven by rising costs, tariff hikes, and falling sales, including a 19% drop in net sales during the second fiscal quarter of 2026. Mithaq Capital, a Saudi-based family office, currently holds a 61.1% equity stake in the company.

While e-commerce sites and stores remain open, the company has begun liquidating inventory and may close some of its locations during the restructuring process. Co-chief restructuring officer Rudy Morando stated the company is committed to an efficient and transparent sale process while remaining focused on serving its customers.