Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SECAUCUS, NJ-Coming off a challenging year, Children’s Place Retail Stores is exiting the Disney Store North America business, possibly selling a major portion of that chain back to Disney, the retailer said at the firm’s fourth quarter conference call.

While a new Disney Store prototype has been well received, returns are too long-term and capital outlay too high to remain in the business, explained Chuck Crovitz, Children’s Place interim CEO.

“The equation simply does not balance out in this environment,” Crovitz said.

Children’s Place and The Walt Disney Company have confirmed that they are in advanced discussions for Disney to acquire two-thirds of the chain’s 335 stores in North America. Crovitz declined to offer specifics about the remaining stores, other than to emphasize that it will exit the Disney business.

“The company believes the Disney Stores can be an important extension of the ‘Disney’ brand and, with the improved economics provided by a smaller store footprint, could add value to the company in the promotion and monetization of its growing number of robust franchises,” Disney said in a press release.

The move is one of several strategic initiatives Children’s Place is undertaking to return to profitability, which also eliminating 80 jobs (partially related to Disney), discontinuing plans for a new headquarters and cutting its namesake store expansion from 54 new units last year to 30 new stores this year. Most stores will open in the third quarter as it explores the most cost-efficient ways to roll out a new prototype. The chain also plans 17 renovations.

For the quarter, sales were $670.9 million, up 4% from the previous year. Consolidated comparable store sales increased 3%. The chain posted a loss of $58.5 million compare with earnings of $44.7 million for the same quarter last year.

For the year, sales were $2.2 billion, up 7% from the prior year. Comparable store sales rose 2%. The company reported a net loss of $59.6 million, compared with net income of $87.4 million last year.

Children’s Place owns and operates 904 Children’s Place stores and 335 Disney Stores in North America.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.