Oh PLEASSSSSE let this be true!
It looks like after the broken license agreements and failure to make profits, The Children's Place is ready to get out of the Disney Store and give it back to the Walt Disney Company: Children's Place to exit Disney stores
I can't help but think this is a good thing. I don't know why WDC sold Disney Store to the Children's Place in the first place, but I'm glad to see them being returned. I haven't been happy with my local Disney Store in years. Here's hoping the new holders of the reigns are able to return it to the levels it was at once upon a time....
Oh PLEASSSSSE let this be true!
I was working for the disney store during the change over and being bought by the Childrens Place and even though there werent any dramatic changes it just wasnt the same as before so this is GREAT
I sure hope this is true. The quality of the exhibits of merchandise has been poor-- not Disney enough for my tastes. It was like getting a taste of Disney without the travelling!
Anybody know which stores will be closing?
I don't know, but the store in Albany, NY was having a 40% off sale last weekend. That could be coincidental, or a foreshadowing of things to come. :-(
I know the one at University in Tampa is closing. THey've been having huge sales since well before Christmas. Don't know if they are closed yet...
Jan '07 Pop Century, Mar '07 Day Trip, April '07 Off Property, May '07 OKW, July '07 POR, Oct '07 Pop Century (& MNSSHP!!!), Dec '07 Day Trip
Jan '08 POR
Feb '08 Pop
Mar '08 Off Property
April '08 AS Sports - I think - still gotta book it
Here is the message that has just been posted:
Disney is taking over on May 1st, 2008. On Monday the Disney Stores
that are closing will be announced.
Here is the latest news:
*Hoop Holdings, LLC and Its Subsidiaries D/B/A Disney Store North
America Pursuing Transfer of Substantial Portion of Disney Store Business to
The Walt Disney Company Under Chapter 11 Case
Chapter 11 Filing Does Not Apply to Parent Company, The Children's
Place Retail Stores, Inc.*
SECAUCUS, N.J., March 26, 2008 (PRIME NEWSWIRE) -- The Children's Place
Retail Stores, Inc. (Nasdaq:PLCE), today provided an update on its
plans to exit the Disney Store North America ("DSNA") business in order to
focus on its core namesake brand. The Company conducts the DSNA
business through its subsidiary Hoop Holdings, LLC and its subsidiaries
("Hoop") under a license agreement with The Walt Disney Company.
As previously announced on March 20, 2008, The Children's Place Retail
Stores, Inc. ("the Company") decided to exit the DSNA business as part
of the Company's review of strategic alternatives. As part of the
review, the current management team determined that the license agreement,
originated in 2004, requires substantial investments that are not
expected to deliver economic returns. The Company also took into account the
losses incurred by DSNA's operations, DSNA's current earnings prospects
as a licensee, and the restrictions imposed by the license agreement
on the sale of the business to a party other than The Walt Disney
Company. It was therefore concluded that the Company will be in a better
position to maximize value by focusing on its namesake Children's Place
brand. Importantly, this action is only one component of a broader
strategy to maximize shareholder value. As announced last week, the management
team is undertaking a number of initiatives to reduce expenses, strea
mline operations, and lower inventories and capital expenditures.
Also, as previously announced, the Company and Hoop have been engaged
in advanced negotiations concerning the transfer of a substantial
portion of the DSNA business to The Walt Disney Company. In connection with
these negotiations, Hoop's Board of Directors has determined that with
limited strategic and financial options available under the license
agreement, Hoop's only alternative was to file bankruptcy proceedings.
In a separate press release today, Hoop announced that it commenced a
Chapter 11 case for the reasons described above. It also intends to
pursue the transfer of a substantial portion of the DSNA business to an
affiliate of The Walt Disney Company in order to maximize proceeds
available to its stakeholders. By filing such a case, Hoop also expects to
complete an orderly wind-down of the rest of its affairs. The transaction
under negotiation is subject to the satisfaction of certain conditions,
including approval of the U.S. Bankruptcy Court and is targeted for
completion by April 30, 2008. In the event that the transaction as agreed
to by the parties is approved by the Court, the Company would be
released from any liabilities and all claims that have been or might be
asserted by The Walt Disney Company. The Company continues to expect the
pre-tax cash costs to exit the DSNA business to be within the previously
stated range of $50 million to $100 million, payable over a period of
Neither Hoop's parent company, The Children's Place Retail Stores,
Inc., nor any of its other subsidiaries, filed for bankruptcy.
Chuck Crovitz, Interim Chief Executive Officer of The Children's Place
Retail Stores, Inc., stated, "This exit strategy is consistent with the
corporate actions and strategic priorities we outlined last week. This
will enable the Company to transition away from the Disney Store
business in an orderly and expeditious manner so that we can concentrate
exclusively on The Children's Place, our core brand and business. We have
the utmost respect for the Disney Store brand, however, the cost of
running the Disney Store was no longer an acceptable use of Company's
resources. We were left with no other choice but to find a reasonable way
to exit the operations within the confines of the existing license
"We believe this is the right decision for The Children's Place and its
shareholders as we move forward with our plans to strengthen
operations, a process which is well underway. We are pleased with recent sales
trends in the core business and continue to believe that The Children's
Place brand is strong and well-positioned for the future."
As previously disclosed, the Company has been conducting an ongoing
review of strategic and financial alternatives to accelerate improvement
of The Children's Place business and deliver enhanced shareholder value.
The management team has outlined a number of specific initiatives
including reducing expenses and streamlining operations and is also seeking
additional funding to strengthen its capital position. There can be no
assurance that the Company will be able to obtain such funding. As the
Company's review is ongoing, management will continue to provide
updates and report on progress throughout 2008.
The Children's Place Retail Stores, Inc. will host a conference call to
discuss this announcement tomorrow morning at 9 a.m. Eastern Time.
Interested parties are invited to listen to the call by dialing
800-895-0198 and providing the Conference ID, PLCE. The call will also be webcast
live and can be accessed via the Company's web site,
The Children's Place. A replay of the call will be available approximately one hour
after the conclusion of the call, until midnight on April 2, 2008. To
access the replay, please dial 800-688-9445, or you may listen to the
audio archive on the Company's website, The Children's Place.
When you wish upon a star.....
LAUGHTER IS TIMELESS, IMAGINATION HAS NO AGE AND DREAMS ARE FOREVER.
Adults are only kids grown up, anyway. WD
...That's the real trouble with the world. Too many people grow up. WD
"For those who get it, no explanation is necessary. For those who don't, no explanation will do."
My wife will be devastated if our local Disney Store closes down. I don't think there has been a time that our store has been empty. And we go in the middle of the day during the week and it's still busy.
But, I have a feeling it will quickly come back to it's original luster once it's back under the umbrella of the Disney Corporation.
I think it's a rare situation when a 3rd party can run a Disney property the way the Disney corporation expects it to be run. The only exception I can think of where it worked is the Oriental Land Company's handling of the Disney properties they are paying franchise fees for
The Louisville store @ Oxmoor Center is "cautiously optimistic" that they will remain open, but know nothing yet.
My closest store (Livonia, MI) closed. No notice. Just read it in the paper that they had closed.
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