Disney buying back Disney store?

[MayBWeRMnt2B]

Good news! Now they just need to bring back the catalog...

[Jiminy Cricket]

I think it was a matter of CP closing all the stores or selling back to Disney. I think this is only a stop gap measure considering the present state of retail sales, especially in malls.

[Jiminy Cricket]

Net loss for the full year was $59.6 million, or $2.05 per share, compared to net income of $87.4 million, or $2.92 per share last year. A $147M swing is not good for any business.

[disneyfanatic101]

Good news! Now they just need to bring back the catalog...

I agree with the catalog idea 100%!

[MandaBella]

Oooh....when Disney takes back ownership, will I get my DVC DISCOUNT BACK?!?!?! I hope so!

BTW, DH actually bought something for me Thursday from the Disney store. I got that white cotton skirt for $14.99 that I've been eyeing on the website and was going for around $50.

[DisneyLove28]

Fortunately, 3 of our 5 malls in the area have a Disney store, although I just found out that one of those 3 closed. Thankfully, the one in the mall that I work at is still around and should be. I'm gonna go ask them today, but I don't see why they would close. Our mall is doing absolutely insanely well. We have a ton of Canadians coming down to shop cuz of the exchange rate, plus part of our mall just got updated and they extended the mall hours for Sundays. Not such great news for us workers, but if it means the Disney store will stay, then I'm fine with it!

I had an interview at the Disney store too when I was initially looking for my first job over two and half years ago, but I'm glad I didn't go there because I've heard that their managers are terrible! One of the girls that works at our store quit TDS when she got her position with us and said it wasn't any fun working there. Who would have thought?

[GalPal]

I had an interview at the Disney store too when I was initially looking for my first job over two and half years ago, but I'm glad I didn't go there because I've heard that their managers are terrible! One of the girls that works at our store quit TDS when she got her position with us and said it wasn't any fun working there. Who would have thought?

Unfortunately, this wasn't a unique situation. TCP has a completely different philosophy about retail management. Don't get me wrong - there are still managers out there with a "Disney Attitude" but I firmly believe they are more the exception than the rule. The manager at the last remaining store in Iowa believes that TDS is no different than any other store at the mall. The CMs she has hired are tatooed, pierced kids who reek of tobacco and bad attitudes.

I stopped in there last week for the first time in six months and she just ignored me the entire time. No "hello", "how are you today", or "can I help you find anything today". Nothing! I had several items in my basket but, in the end, just bought one t-shirt off the clearance table. No way I was going to help out her ADS or UPT.

Fingers crossed that things are about to change for the better!

[DisneyLove28]

ADS and UPT! Haha! It reminds me that I have to go to work now....It's gonna be an insanely crazy day and I don't feel like leaving, hence why I'm posting on here lol! But I'm definitely gonna stop at my DS today just to make sure that they're sticking around. And the manager there that did interview me at least still asks me how I'm doing when I stop in! I guess that's better than your store, but nowhere near how it should be for having the Disney name!

[Stitch]

The one is my mall is closed for two months this summer for a complete remodel. Currently it has the store setup where you walk in through the large red mickey head. I really never liked the look of it, so I hope the remodel and the return to Disney Ownership will help the look of it.

[Spyne]

It'll be good for the Disney Store chain to be back in the right hands at Disney. I'm hoping it does happen!

[DisneyLove28]

Well the one in my mall is safe, thankfully! It's my favorite stop during my breaks at work! lol!

[ohiodisneydad]

We purchased our park tickets yesterday at our closest Disney Store. I asked a CM who turned out to be the store manager about these rumors. She told me that it is true that the stores are returning to Disney ownership but the employees have been told nothing about closings. She said that she has heard more info from people who read about this on the internet. She said the rumors are rampant and she was told by a guest that the Disney stores were going to be relocated into an unidentified major chain department store. She seemed rather upset and it never really hit me until then that while for us its a place to go to get a little magic when we aren't able to go to WDW it is a source of income to those who are there and any closings will affect their lives.

[Disney05]

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
time.
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
agreement."
"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,
www.childrensplace.com. 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, www.childrensplace.com.
***************

[GalPal]

Wow, I just listened to the recorded webcast. Filing for bankruptcy is an interesting way to divest the unprofitable stores. Are you certain that they will be announcing which stores Disney will be taking back on Monday? According to the webcast, they just filed their intentions with the courts on Tuesday evening and don't even have court dates scheduled yet. I'm thinking it is entirely possible because Hoop and Disney have been working on this for some time.

According to the webcast, it is actually Disney advising Hoop on how to move forward. So, I'm guessing they have poured over the books extensively - they know which stores are profitable, which ones have reasonable leases, etc. I'm hoping they don't keep TDS CMs waiting to hear their fate for weeks on end.

[ohiodisneydad]

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.


***************

Any word on which stores are closing?