The Children's Place, the US kids' clothing chain that also owns Gymboree, filed for Chapter 11 bankruptcy on November 8, 2026 and is trying to sell itself by the end of December. Its stores and websites are still open for now, but the company says some stores will close, gift cards and rewards points will only work for a limited time, and anything bought after November 6 is final sale. Buyers have until December 9 to bid.[1][3][4]
 | |
| Company | The Children's Place, Inc. (brands: The Children's Place, Gymboree) |
|---|---|
| Headquarters | Secaucus, New Jersey |
| Filed | November 8, 2026 |
| Type | Chapter 11, with a section 363 sale of nearly all assets |
| Court | US Bankruptcy Court, District of New Jersey (case 26-22682) |
| Stores | About 512 to 515 in North America, all open for now |
| Assets / liabilities | $742.3 million / $881.3 million |
| Bid deadline | December 9, 2026 |
| Target sale date | By the end of December 2026 |
| Majority owner | Mithaq Capital (Saudi Arabia), since 2024 |
What happened
The Children's Place announced late on Saturday, November 8, that it had voluntarily filed for Chapter 11 protection in the US Bankruptcy Court for the District of New Jersey. It wants to sell "substantially all of its assets" under section 363 of the Bankruptcy Code, which allows a company to sell itself through a court-supervised auction.[1][5]
The company says it is talking to several possible buyers and wants a deal that keeps the business running. It has asked for bids by December 9 and hopes to finish the sale by the end of December.[1][4][6] To pay for day-to-day operations in the meantime, it plans a new loan from its existing secured lenders.[1][2]
"Today's announcement marks an important step in our efforts to secure the best path forward for The Children's Place," said Rudy Morando, the company's co-chief restructuring officer, in the announcement.[1][5]
In its filing the company listed about $742.3 million in assets against $881.3 million in liabilities.[4][5]
Are The Children's Place stores closing?
Some are, but the company has not said which ones. On its customer page it says "certain store closures will be necessary" during the process and that it "will communicate confirmed decisions as they are made." It also says that, for now, every store and both websites (childrensplace.com and gymboree.com) are open.[2][3]
The chain had roughly 512 to 515 stores across the US, Canada and Puerto Rico when it filed. CNBC put the count at 514 stores, NJBIZ at about 515, and a sworn first-day court declaration at 512.[4][5][7] The company is also asking a court in Canada to recognise the US case so its Canadian stores and assets can be included in the sale.[1][7]
Shoppers may already see big signs. The company hired a joint venture of GA Group, Tiger Group and SB360 Capital Partners to run inventory sales across its stores, and its website is advertising deep discounts.[1][5] According to Stock Titan, which went through the court docket, the company's store closing motion covers all of its remaining store locations for now, with sales allowed to run until February 28, 2027. That deal lets the company pull stores out of the closing sales if a buyer makes a firm offer to keep the business going.[7] The company itself stresses that a wind-down "is not the path the Company is striving toward."[2]
Jobs are at risk too. In a WARN notice to New Jersey's labor department, the company said 732 positions in the state could be cut by February 2, 2027. New Jersey is where the company has its headquarters, in Secaucus.[5][8]
Gift cards, rewards points, returns and online orders
This is the part that affects most families, and the short answer is: use what you have soon.
Gift cards
The company says that, subject to court approval, it will keep accepting The Children's Place and Gymboree gift cards "for a limited time." After a final date, which it has not announced yet, gift cards will not be accepted and "any remaining balances will not be redeemable for cash."[3][7] In court papers the company asked for gift cards and points to be honored for 30 days at closing stores, counted from the judge's order. That was still a request, not a ruling, when Stock Titan checked the docket on November 10.[7]
My Place Rewards points
Points also work for a limited time, again subject to court approval. After the final redemption date "the My Place Rewards program will be discontinued, and any remaining points will no longer be valid."[3][7]
Returns and exchanges
Returns and exchanges are still accepted for eligible purchases made between October 23 and November 6, 2026, under the usual return policy. Everything bought after November 6 is final sale and cannot be returned or exchanged.[3][7]
Online orders
The company says it expects orders and deliveries to "continue without interruption."[3][7]
Why The Children's Place went bankrupt
The company blames falling demand, higher costs and tariffs. In its most recent quarter, which ended August 1, 2026, net sales fell 18.9% from a year earlier to $241.8 million.[5][6] CNBC also pointed to tariff hikes and slower consumer spending.[4]
Money troubles go back further. Saudi-based Mithaq Capital took control of the company in 2024, when it was already struggling, and its support has not turned the business around.[4][5] Days before the filing, the company disclosed leadership changes: interim CEO Muhammad Asif Seemab stepped down from that role but stayed on the board, and chief financial officer John Szczepanski became acting president and principal executive officer.[4][6]
What happens next
The company asked the court to approve a bidding process, with bids due December 9 and a sale planned by the end of December.[1][4] There are three broad ways this can end:
| Outcome | What it means | For stores |
|---|---|---|
| Buyer keeps the business | A bidder takes over the chain as a going concern, the result the company says it wants | Many stores could stay open; closing sales can stop[2][7] |
| Brands sold on their own | The Children's Place or Gymboree names are sold or licensed without the stores | Stores not sold are wound down under the court[7] |
| No deal | The liquidation agreement becomes the fallback the company says it must prepare for | Remaining stores close after clearance sales[2][7] |
Anyone with questions about the case, such as suppliers or landlords, can use the case website run by the claims agent, Omni Agent Solutions.[1][2]
Timeline
| Date | Event |
|---|---|
| 2024 | Mithaq Capital takes control of the struggling company[4][5] |
| August 1, 2026 | Quarter ends with net sales down 18.9% to $241.8 million[5][6] |
| Early November 2026 | Leadership changes disclosed; CFO John Szczepanski becomes acting president[4][6] |
| November 6, 2026 | Inventory sales begin; purchases after this date are final sale[3][7] |
| November 8, 2026 | Chapter 11 filed in New Jersey; sale process announced[1][6] |
| November 10, 2026 | First-day court hearing on wages, vendors and customer programs[1][7] |
| December 9, 2026 | Deadline for bids[1][4] |
| End of December 2026 | Target date to complete the sale[1][6] |
Frequently asked questions
Is The Children's Place going out of business?
Not yet. It filed for Chapter 11 to sell itself, ideally to a buyer who keeps it running. The company admits it must prepare for the chance that no such sale happens, in which case the remaining stores would be wound down.[2][7]
Is The Children's Place closing all its stores?
No closures have been confirmed. The company says some stores will close and it will announce decisions as they are made. Its court papers put all remaining stores in clearance sales for now.[3][7]
Can I still use my Children's Place gift card?
Yes, for a limited time. The final date has not been announced, and leftover balances will not be paid out in cash.[3][7]
Can I return something I bought at The Children's Place?
Only eligible purchases made from October 23 to November 6, 2026. Anything bought after November 6 is final sale.[3][7]
Is Gymboree closing too?
Gymboree is owned by The Children's Place, so it is part of the same bankruptcy and sale. Gymboree gift cards follow the same limited-time rule.[3][4]
Will online orders still arrive?
The company says orders and deliveries should continue without interruption.[3]
References
- "The Children's Place Commences Process to Effectuate Value-Maximizing Sale Transaction". The Children's Place (press release via Business Wire). November 8, 2026.
- "The Children's Place Commences Court-Supervised Sale Process". The Children's Place corporate site. Retrieved November 12, 2026.
- "The Children's Place and Gymboree Are Open to Serve You and Your Family". The Children's Place customer page. Retrieved November 12, 2026.
- "Children's Place files for bankruptcy protection, seeks buyer". Maggie Roth, CNBC. November 9, 2026.
- "The Children's Place files for Chapter 11 bankruptcy". Kimberly Redmond, NJBIZ. November 9, 2026.
- "The Children's Place bankruptcy filing sets bidding in December". Brian Warmoth, Digital Commerce 360. November 9, 2026.
- "Children's Place (PLCE) Bankruptcy Limits Time to Use Gift Cards and Points". Stock Titan. November 10, 2026.
- "The Children's Place reportedly weighing Chapter 11 bankruptcy or liquidation". Kimberly Redmond, NJBIZ. November 5, 2026 (updated November 6).