Children's Place Launches Review of Disney Stores
Secaucus, N.J. The Children’s Place Retail Stores Inc., which has seen its sales suffer because of lagging growth at Disney stores, has hired a consultant to review potential options for the brand, according to Crain’s New York. The company also said that it hired an unnamed consultant to review options for Disney stores.
But a pricey licensing deal could make it difficult for the Children’s Place to do much, the report added. Under a long-term agreement, the retailer must invest $175 million to remodel 234 Disney stores over the next five years, a big promise from a company that reported a 70% drop in third-quarter profits in November.
In August, Children’s Place said it was unable to meet “several” of the remodeling deadlines, and sought a postponement of some of its obligations from Disney, the report said.