Blog: Leonie BarrieChildren's Place going places?

Leonie Barrie | 12 October 2007

The Children's Place isn’t commenting on claims that it’s up for sale, but its recent run of bad luck might not mean these rumours are too far off the mark.

An ongoing dispute with The Walt Disney Company with whom it has an agreement to operate 328 Disney Stores, the resignation of CEO Ezra Dabah for violating the company's code of conduct on securities trades, and failing to file any quarterly reports since June 2006, are just some of the problems it has recently been up against.

And just when things looked like they couldn’t get any worse, this week its auditor, Deloitte & Touche, decided not to stand for re-election and the retailer was forced to slash its full year earnings forecast.

Prospective suitors are thought to include private equity and apparel firms, but they will need to be convinced there are opportunities to improve the company's performance – and that the information included in the company’s audits is sound.

Some analysts see the Disney Store business as the biggest hurdle to any sale though. Margins are low and a newly agreed $175m store remodeling schedule over the next four years will be a heavy financial drain. But exiting the agreement will be a costly option too.

US: Children's Place up for sale?


BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

BLOG

Trump trade policies and China tensions top concerns

This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...

BLOG

Happy New Year – and a first look at 2017

Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....

BLOG

New re:source to help unravel sourcing decisions

Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...

just-style homepage



Forgot your password?