The Children's Place Retail Stores Inc has modified its license agreement with The Walt Disney Company and will now undertake two more store remodels that previously arranged.

However Children's Place, which operates the Disney Store chain in the US and Canada, has deferred 20 remodels that had been due to take place in 2007 and 2008 in order to meet its new commitments.

A total of 236 existing stores will now be remodelled into a new store prototype by the end of fiscal 2011, and a further 165 will be refreshed.

The changes to the original license agreement also means that Disney can now relocate its flagship store in Manhattan, as well as grant direct licenses to other retailers specialising in children's merchandise.

The Children's Place is also said it is requesting additional time to file its annual report with the US Securities and Exchange Commission. The report was due to be filed today (31 August).

Last week the retailer, which operates 883 The Children's Place stores and 328 Disney Stores, said its net loss for the three months to 4 August nearly doubled to $27.1m, while sales rose 7% to $424.3m.