Children’s Place to close stores, open others in productive areas: report
The Children’s Place announced they were planning to close 40 to 45 stores in 2019 but will open 25 new ones in productive areas, according to a report. (Google Street VIew)
The Children’s Place is planning on closing between 40 and 45 stores but will open new ones in productive areas, a Friday report stated.
The New Jersey-based children’s clothing retailer earlier announced that it would close hundreds of store locations by 2020 as part of a shift toward digital commerce. This week, the retailer said it planned on shuttering another 40 to 45 stores, USA Today reported.
However, Mike Scarpa, the company’s CFO, said in an earnings call that the company planned to open “25 stores in highly productive centers over the next two years” in wake of Gymboree’s bankruptcy. The Children’s Place bought the rights to Crazy 8 brands and Gymboree in March for $76 million. Gymboree filed for bankruptcy in January.
Scarpa said the company planned to open 10 of those stores in 2019. CEO Jane Elfers said the company was also looking to relaunch Gymboree in 2020.
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On Wednesday, the Children’s Place Retail Stores Inc. reported fiscal first-quarter net income of $4.5 million. The company’s shares have risen 24 percent since early 2019.
The Associated Press contributed to this report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PLCE | THE CHILDREN'S PLACE INC. | 6.85 | -0.32 | -4.46% |