Blog: Disney to weave magic over chain?
Leonie Barrie | 25 March 2008
News that The Walt Disney Co is seeking to regain control of about two-thirds of the stores in the Disney Store chain comes as no surprise.
The Children's Place Retail Stores Inc has had a long-term license agreement to operate the Disney Store shops in North America, but in January hinted all was not well and that it was to review its strategic options.
Contributing to its decision were a recent dispute with The Walt Disney Co, the resignation of CEO Ezra Dabah for violating the company's code of conduct on securities trades, and long delays to its quarterly reports filings.
As if these problems weren’t enough, Children's Place has just swung to a fourth quarter loss of $58.5m, or $2.01 per share, which it blamed on impairment charges and other costs related to the Disney deal. In the same period last year it posted a profit of $44.7m, or $1.48 per share. It has also embarked on a cost-cutting exercise for the year ahead, which will see the loss of about 130 jobs.
It remains to be seen whether the Disney Stores will be a burden for the entertainment giant; after all, it has already offloaded them once before. The company seems to think, though, that the retail stores could extend its brand and, with a smaller footprint, add value to the company.
Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...
Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....
One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....
As the Brexit roller-coaster continues to twist and turn, and the US presidential election campaign nears its unpredictable and possibly protectionist end, there's no doubt these events – and the perc...
- Why do modern robotics elude sportswear makers?
- Mexico makers bullish on Trump's proposed tariffs
- Traditional financing is a misfit for fast fashion
- How would end of NAFTA affect US apparel industry?
- Bagir CEO says suit-maker is back on track
- US Q3 in brief - G-III Apparel, Express
- Bagir exports first trousers for H&M from Ethiopia
- Fruit of the Loom CEO Medlin dies suddenly
- Throwaway fast fashion model needs re-think
- Crystal expands empowerment project to male staff
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016
- Footwear Top 5 Emerging Markets Industry Guide_2016
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack