The Children’s Place, Inc. filed for Chapter 11 bankruptcy on Nov. 8 and is seeking to sell substantially all its assets as it faces about $394 million in debt obligations.
In a Nov. 9 SEC filing, the children’s clothing retailer reported that amount outstanding under debt agreements and notes as of Nov. 8, the bankruptcy petition date. The figure excludes accrued interest and other fees.
The bankruptcy made those obligations due, the filing said, while creditors’ enforcement actions are automatically stayed.
The company says customers can continue shopping in its stores and online. It expects to close some stores during Chapter 11 as it reviews its locations, according to its restructuring FAQ.
The filing follows an earlier Debtwire report that the retailer was preparing for a possible bankruptcy filing.
The retailer plans to ask the bankruptcy court to approve a process for selling substantially all its assets.
To support operations during the case, it expects to request debtor-in-possession financing or permission to use cash collateral, both subject to court approval.
The proposed schedule sets Dec. 9 as the bid deadline, pending the court’s approval.
The company aims to finish the sale by the end of December.
