The Children’s Place, the well-known children’s clothing retailer, filed for Chapter 11 protection under the federal Bankruptcy Code on Sunday. In a statement that day, the company said the filing was made "to carry out a sale transaction aimed at maximizing value." As part of the bankruptcy process, interested bidders must submit offers to the U.S. Bankruptcy Court for the District of New Jersey before December 9.
The company said that at this time all of its stores and e-commerce sites remain open and continue serving customers. In Puerto Rico, The Children’s Place has at least six stores in operation. Beyond the sale process, the company said it expects to secure a debtor-in-possession (DIP) financing agreement.
Subject to court approval, the company said, that DIP financing will allow it to continue operations during the sale process and the Chapter 11 cases. It also said it has filed customary motions to keep paying employee wages and benefits, maintain certain customer programs, and pay vendors for goods and services supplied after the filing date.
In the United States, The Children’s Place employs more than 10,000 people, according to the company’s website.