The Children’s Place filed for Chapter 11 bankruptcy on Sunday 8 November 2026 and began liquidation sales across its roughly 514 US stores. The petition listed about $742 million in assets against $881 million in debts. The company is trying to sell substantially all of it by the end of December.
Is Every Children’s Place Store Closing?
That is not settled. The retailer’s website says yes; its formal statement says only that “certain stores” must close.
The company site carries an “All stores closing” banner above everything-must-go markdowns of 30 to 60 per cent. The statement filed alongside the bankruptcy is narrower: the plan is to sell all assets, and doing so “will require the closure of certain stores”. A spokesperson said every store and the e-commerce site were still trading as of Wednesday 11 November, and that the chain would confirm individual decisions as they were made.
State employment filings are blunter. A New Jersey notice lodged on 6 November covers about 732 workers and all 24 of the company’s stores in the state, with closures effective 4 February 2027. Gymboree locations in New Jersey are included.
What settles the rest is the auction. A bidder who wants the business running will keep more stores open than a bidder who only wants the inventory. As of 12 November 2026 no buyer has been named and no national closing list has been published.
What Happens to Your Gift Cards and Returns
Gift cards and loyalty points are still being accepted, but only for a limited period and only while the court allows it.
| Item | Rule as of 12 November 2026 |
|---|---|
| Gift cards | Accepted for a limited time, subject to court approval; no final redemption date announced |
| My Place Rewards | Accepted on the same limited-time, court-approved basis |
| Purchases 23 October to 6 November | Returnable under the existing policy, subject to court approval |
| Purchases after 6 November | Final sale, no returns or exchanges |
| Online orders | Website trading; orders and deliveries expected to continue for now |
| Store discounts | 30 to 60 per cent off in closing sales |
The practical advice from the company and from consumer reporters is the same: spend the balance early. Gift-card treatment in a retail bankruptcy is not fixed by statute, the honour period can end on short notice, and once it does a remaining balance is not redeemable for cash. A gift card is an unsecured claim, which in a liquidation is near the back of the queue.
Why the Children’s Place Ran Out of Money
Sales and store numbers fell for years, debt did not, and a Saudi rescue in 2024 bought time rather than a fix.
The chain was founded in 1969 and has been run from Secaucus, New Jersey, trading on the Nasdaq as PLCE since 1997. Its crisis point came in February 2024, when it disclosed a liquidity shortfall and Mithaq Capital SPC, a Saudi family investment firm, took a majority stake of about 54 per cent. Mithaq then lent it $78.6 million interest-free, followed by a further $90 million in April 2024 — $168.6 million inside two months — and later pushed the loan maturities out to 2030 and 2031.
That stabilised the balance sheet without reversing the trade. Jane Elfers, chief executive since January 2010, stepped down on 20 May 2024. The company blamed inflation and tariffs for what it called a sustained decline in net sales and profitability, while executive chairman Turki AlRajhi described its physical shops as an “orphan channel” and the company said a smaller store estate had cut store traffic and first-time purchases.
The wider squeeze is one every children’s chain has felt: falling birth rates shrinking the customer base, and Amazon and the online fast-fashion sellers taking the rest. Francesca’s closed roughly 450 stores in its own 2026 Chapter 11 on much the same arithmetic.
What Happens to Gymboree?
Gymboree is inside the sale, and it has already survived being liquidated once.
The Children’s Place bought the Gymboree and Crazy 8 trademarks out of bankruptcy for $76 million in cash, closing the deal on 4 April 2019. Gymboree had filed for bankruptcy twice, the second time in January 2019, and that filing wiped out every Gymboree, Gymboree Outlet and Crazy 8 shop.
It came back in February 2020 as an online brand and as a shop-within-a-shop in more than 200 Children’s Place locations. A standalone Gymboree store reopened on 20 November 2024 at Westfield Garden State Plaza in Paramus, New Jersey.
The company now says it is pursuing a sale of the brand with the aim of continuing to serve families under new ownership. A label can outlast its shopfronts: Rite Aid closed every store and the name was revived afterwards.
Who Could Buy the Chain, and When We Will Know
Bids are due on 9 December 2026, and the company wants the sale finished before the year ends.
The filing was made with 13 affiliated debtors in the US Bankruptcy Court for the District of New Jersey, and it asks the judge to approve a sale of substantially all assets. Rudy Morando, a co-chief restructuring officer, called the filing an important step towards the best path forward. No stalking-horse bidder has been identified publicly.
Two dates already sit beyond the sale deadline. The Fort Payne, Alabama distribution centre closes on 5 January 2027, taking all 593 jobs there; the company announced it on 5 November and Alabama received the formal notice on 6 November. That is under the 60 days the federal WARN Act normally requires for a plant closing, and a plaintiffs’ firm has said publicly it is examining the notice period. The New Jersey store closures land a month later, on 4 February 2027.
For shoppers the useful summary is that nothing about this is final yet. As of 12 November 2026 there is no named buyer, no nationwide list of which shops go, and no published deadline for gift cards.
Frequently Asked Questions
Is The Children’s Place Still Open?
Yes. As of 12 November 2026 the stores and the website were both trading, with closing-sale discounts of 30 to 60 per cent. The company has not said when individual shops will take their last orders.
Should I Use My Children’s Place Gift Card Now?
Yes, as soon as you can. The honour period is time-limited and depends on court approval, no end date has been published, and an unspent balance cannot be converted to cash once the window shuts.
Who Owns The Children’s Place?
Mithaq Capital SPC, a Saudi family investment firm, has been the majority shareholder since February 2024 with a stake of about 54 per cent. Turki AlRajhi is executive chairman.
Had The Children’s Place Been in Trouble Before This?
Yes. It disclosed a liquidity shortfall in February 2024 and only kept going because Mithaq Capital injected $168.6 million in loans over the following two months.
When Will Children’s Place Stores Actually Close?
The only confirmed dates are the Fort Payne distribution centre on 5 January 2027 and the 24 New Jersey stores by 4 February 2027. No nationwide closing date has been set, because it depends on who buys the company.
