A subsidiary of Children's Place Retail Stores Inc. that operates 322 Disney Stores in North America filed a Chapter 11 bankrupcty petition late Wednesday and said it plans to sell 180 stores to the Walt Disney Co. and its affiliates.
Children's Place also said that it expects an "orderly wind down" of the 142 stores that Disney is not buying.
Hoop Retail Stores LLC, the subsidiary of Secaucus, N.J.-based Children's Place, said in the filing that it would sell the stores for $55 million to $65 million depending on the value of existing inventory.
Children's Place bought the stores from Disney nearly four years ago and was never able to make them profitable, claming more than $30 million in losses over that span.
In a statement, the company said that it faced restrictions from selling the stores to a buyer other than Disney.
The Children's Place operates more than 900 Children's Place stores and focuses on a specialty products and children's merchandise. The bankruptcy filing by Hoop has no direct effect on the Children's Place.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Disney Store Sale Price Confirmed
- Disney Takes Control of Disney Stores
- Disney Inks Deal With Payless
- Business Briefs: Guess, Disney, Computer Sciences, Prospect Medical Holdings, Global ePoint
- Disney's Profit Jumps 41 Percent
- Disney Posts Strong Quarter on Theme Parks, Retail Revenues
- Disney Recalls Lead-Tainted Toys