The Children’s Place Provides Shareholder Update
February 15 2024 - 6:30AM
The Children’s Place, Inc. (Nasdaq: PLCE), an
omni-channel children’s specialty portfolio of brands with an
industry-leading digital-first model, today announced that it has
received correspondence from Snowball Compounding Ltd. and parties
related to Mithaq Capital (“Mithaq”) notifying the Company that
they own approximately 54% of the Company’s outstanding shares of
common stock and intend to nominate 11 persons to stand for
election to The Children’s Place’s Board of Directors at the
Company’s 2024 Annual Meeting of Shareholders. The Company intends
to accept Mithaq’s request to enter into discussions regarding the
provision of financing to assist with the Company’s liquidity
needs. Any such financing would be subject to, among other things,
lender approval and compliance with applicable law.
As a result of Mithaq’s unsolicited acquisition
of shares, Mithaq has triggered a Change of Control thereby causing
an Event of Default under the Company’s Amended and Restated Credit
Agreement. The Company is in discussions with its lenders to seek a
waiver of the Event of Default.
The Board and the Company’s senior leadership
team are committed to acting in the best interests of all
shareholders. The Children’s Place shareholders are not required to
take any action at this time.
About The
Children’s PlaceThe Children’s
Place is an omni-channel children’s specialty portfolio of brands
with an industry-leading digital-first model. Its global retail and
wholesale network includes four digital storefronts, more than 500
stores in North America, wholesale marketplaces and distribution in
16 countries through six international franchise partners. The
Children’s Place is proud to be a women-led Company, including
industry-leading gender diversity in senior management and
throughout all levels of its workforce, and of its commitment to
sustainable business practices that benefit its customers,
associates, investors, suppliers and the communities it serves. The
Children’s Place designs, contracts to manufacture, and sells
fashionable, high-quality apparel, accessories and footwear
predominantly at value prices, primarily under its proprietary
brands: “The Children’s Place”, “Gymboree”, “Sugar & Jade”, and
“PJ Place”. For more information, visit: www.childrensplace.com,
www.gymboree.com, www.sugarandjade.com and www.pjplace.com, as well
as the Company’s social media channels on Instagram, Facebook, X,
formerly known as Twitter, YouTube and Pinterest.
Forward-Looking StatementsThis
press release contains or may contain forward-looking statements
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements typically are identified by use of terms such as “may,”
“will,” “should,” “plan,” “project,” “expect,” “anticipate,”
“estimate” and similar words, although some forward-looking
statements are expressed differently. These forward-looking
statements are based upon the Company’s current expectations and
assumptions and are subject to various risks and uncertainties that
could cause actual results and performance to differ materially.
Some of these risks and uncertainties are described in the
Company’s filings with the Securities and Exchange Commission,
including in the “Risk Factors” section of its annual report on
Form 10-K for the fiscal year ended January 28, 2023. Included
among the risks and uncertainties that could cause actual results
and performance to differ materially are the risk that the Company
will be unsuccessful in gauging fashion trends and changing
consumer preferences, the risks resulting from the highly
competitive nature of the Company’s business and its dependence on
consumer spending patterns, which may be affected by changes in
economic conditions (including inflation), the risks related to the
COVID-19 pandemic, including the impact of the COVID-19 pandemic on
our business or the economy in general, the risk that the Company’s
strategic initiatives to increase sales and margin are delayed or
do not result in anticipated improvements, the risk of delays,
interruptions, disruptions and higher costs in the Company’s global
supply chain, including resulting from COVID-19 or other disease
outbreaks, foreign sources of supply in less developed countries,
more politically unstable countries, or countries where vendors
fail to comply with industry standards or ethical business
practices, including the use of forced, indentured or child labor,
the risk that the cost of raw materials or energy prices will
increase beyond current expectations or that the Company is unable
to offset cost increases through value engineering or price
increases, various types of litigation, including class action
litigations brought under consumer protection, employment, and
privacy and information security laws and regulations, the
imposition of regulations affecting the importation of
foreign-produced merchandise, including duties and tariffs, the
uncertainty of weather patterns, the risk that we may be unable to
obtain new financing. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date they were made. The Company undertakes no obligation to
release publicly any revisions to these forward-looking statements
that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Contact: Investor Relations (201)
558-2400 ext. 14500
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