The Children’s Place files for chapter 11 bankruptcy to pursue asset sale

US pure-play kidswear retailer The Children’s Place (TCP) has voluntarily filed petitions for chapter 11 relief in the US Bankruptcy Court for the District of New Jersey.

The retailer is seeking to sell substantially all of its assets pursuant to section 363 of the US Bankruptcy Code. TCP stated it is in discussions with multiple parties regarding potential transactions to continue its business operations as a going concern and preserve brand value.

Competitive bidding process launched

TCP intends to file a motion seeking court approval for a competitive marketing and sale process to achieve the highest bid for its assets. Interested bidders must submit offers by December 9, 2026.

The retailer expects to complete the court-supervised transaction process by the end of December 2026. TCP plans to finance its restructuring operations through a new term loan facility provided by its existing secured lenders.

“Today’s announcement marks an important step in our efforts to secure the best path forward for The Children’s Place,” said TCP co-chief restructuring officer Rudy Morando.

“For nearly 60 years, The Children’s Place has supported growing families with apparel that customers have come to know and love,” Morando stated. “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. In the meantime, we remain focused on serving the families who have trusted The Children’s Place for generations.”

Store fleet and e-commerce operations continue

TCP confirmed that its brick and mortar stores and e-commerce platforms remain operational. Subject to court approval, the retailer will maintain promotional inventory sales across its fleet to boost liquidity and operational flexibility.

To facilitate these sales, TCP has entered into a consulting agreement with a joint venture comprising US liquidators and advisory firms GA Group, Tiger Group, and SB360 Capital Partners. TCP is also seeking recognition of the US chapter 11 proceedings in Canada to incorporate its Canadian business into the sale process.

TCP is filing customary first-day motions requesting authorization to maintain post-petition vendor payments, continue customer initiatives, and pay employee compensation and benefits without interruption during the sale period.

Professional advisory support includes US law firm White & Case serving as legal counsel, BRG acting as financial advisor, Cascadia Capital functioning as investment banker, and Cole Schotz acting as New Jersey local counsel. Additional advisory roles include Omni Agent Solutions as claims and noticing agent, and C Street Advisory Group as strategic communications advisor.