The Children’s Place, Inc.

The Children’s Place is pursuing a going-concern sale in Chapter 11 while conducting inventory liquidations, with interim financing and cash collateral use authorized. The interim financing order Dkt. 72 sets a December 15, 2026 final hearing on the financing, with objections due December 8.

The Children’s Place is pursuing a going-concern sale while conducting inventory liquidations under Chapter 11 protection. The company and 13 affiliates filed on November 8, 2026, and the cases are being jointly administered under the parent’s case number. The first-day declaration Dkt. 56 says liquidation sales began on November 6 and describes a proposed court-supervised process to market all or portions of the business.

The declaration attributes the liquidity crisis to operating losses, seasonal working-capital needs and lender-imposed reserves, despite cost reductions, inventory changes and additional financing from Mithaq. Net sales fell from approximately $1.386 billion in fiscal 2024 to $1.209 billion in fiscal 2025, and the company reported an approximately $84.1 million net loss for the first half of fiscal 2026. The debtors identified at least approximately $361,680,000 across three funded-debt instruments, including ABL borrowings, an SLR term loan and subordinated Mithaq term loans.

On November 10, the court entered an interim financing order Dkt. 72 authorizing borrowing and cash collateral use subject to a budget and other conditions. The financing structure includes an ABL facility of up to $166 million, with interim ABL borrowings capped at $131 million outstanding, and a $116 million term facility subject to interim limits. The order authorizes $16 million in new term financing, of which $15 million must pay down prepetition revolving loans, and a $16 million interim roll-up of prepetition term debt. Further refinancing of prepetition obligations depends on a final order.

The final financing hearing is scheduled for December 15, 2026, with objections due December 8. The debtors also intend to continue liquidating inventory while pursuing the sale process; the first-day declaration Dkt. 56 anticipated inventory sales through February 28, 2027.