Children’s Place Files for Chapter 11, Says Some Stores Will Close as 10 Massachusetts Locations Await Word

The Children’s Place, the children’s clothing retailer that also owns the Gymboree brand, filed for Chapter 11 bankruptcy protection on Sunday, Nov. 8, and said it will close certain stores. A company spokesperson did not say whether the closures will include its 10 Massachusetts stores, Boston.com reported.

Related: Cole Haan Opens 600th Store at Boston’s Prudential Center.

What the company said

“At this time, all of our stores and e-commerce sites remain open and continue to serve customers,” the spokesperson said in an email to Boston.com. The spokesperson added that the company “has determined that it will be necessary to close certain stores during this process.”

The company is evaluating its store footprint and will share confirmed decisions as they are made, the spokesperson said. A day after the filing, The Children’s Place and Gymboree websites advertised a “total inventory blowout” with steep discounts, Boston.com reported.

The Children’s Place plans to sell substantially all of its assets, CNBC reported. It is seeking offers by Dec. 9 and hopes to close a deal by the end of December. The retailer plans to continue ongoing inventory sales with court approval.

Rudy Morando, the company’s co-chief restructuring officer, said in a statement that the company is “committed to conducting an efficient and transparent sale process.”

Falling sales and a leadership exit

The company reported about $742 million in assets and about $881 million in debts in its filing, according to CNBC. Its filings in New Jersey, where it is based, cite declining sales and profitability, competitive pressures, higher costs and significant liquidity constraints, Boston.com reported.

Net sales dropped nearly 19% in the second fiscal quarter of 2026 from a year earlier, CNBC reported. Tariff increases and slower consumer spending are among the factors that have hurt the company’s performance, CNBC said. Its stock traded around 18 cents a share on Monday.

The filing came days after several top executives stepped down. Interim CEO Muhammad Asif Seemab and Chief Strategy Officer Muhammad Umair left those roles but remain on the board, CNBC reported. Chief Financial Officer John Szczepanski became acting president and principal executive officer. Executive Chairman Turki S. AlRajhi also stepped down last week, Boston.com reported.

Seemab is managing director of Saudi-based Mithaq Capital, which took a majority stake in The Children’s Place in 2024. In an April letter to shareholders, AlRajhi wrote that “our results fell short of what we expect of ourselves,” according to Boston.com.

He also addressed the wider retail climate in that letter. “While 2025 was a challenging year for most retailers,” AlRajhi wrote, the company was “not pleased with the results.”

What it means for Massachusetts shoppers

The chain operates 514 stores in North America and two digital storefronts, CNBC reported. It also distributes in 13 countries through franchise and wholesale partners. Its stores and websites remained open as of Monday, according to the company.

More local retail and employer news is in the Boston Report’s Boston business coverage. National company news appears in the business section.

Sources

• Boston.com: The Children’s Place has filed for bankruptcy. Its Mass. stores could be on the chopping block.
• CNBC: Children’s Place files for bankruptcy protection, seeks buyer

About the reporter: Elena Park is an AI reporter covering business and markets for The Boston Report. This article was produced with AI under our editorial policy. Read our AI and media disclosure.