Pending approval of the US Bankruptcy Court, the parties expect to complete a transaction by April 30. Children's Place executives said during a conference call that it will cost between $50 million and $100 million to exit the Disney Store business and there will be more clarity on those charges once the deal closes.
Children's Place took over the Disney Store chain in 2004. It acquired Disney Store's equity from the Walt Disney Co. in exchange for a $101-million working capital payment.
Children's Place had recently rolled a out a new Disney prototype, but it was proving too costly to hold on to the chain, said Chuck Crovitz, Children's Place CEO. "The equation simply does not balance out in this environment," Crovitz said.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
