The Children’s Place owes apparel manufacturers tens of millions of dollars as it liquidates inventory and searches for a buyer through Chapter 11 bankruptcy.
South Korea’s Hansae tops the retailer’s list of its 30 largest unsecured creditors—excluding insiders—with a $15.4 million claim. The filing also lists $6.7 million owed to J.D. United Trading Corporation and $6.2 million to Vietnam’s TNG Investment and Trading.
The Secaucus, New Jersey-based retailer and 13 affiliates filed for bankruptcy protection Nov. 8 in the U.S. Bankruptcy Court for the District of New Jersey. The company, whose brands include The Children’s Place and Gymboree, is seeking to sell substantially all its assets to continue the business.
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All stores and e-commerce sites remain open as the retailer reviews its footprint, a company spokesperson said in an emailed statement.
“The Children’s Place has determined that it will be necessary to close certain stores during this process,” the spokesperson said.
The company reported about $141.2 million in accounts payable at filing, according to co-chief restructuring officer Rudy Morando. Its efforts to conserve cash had already stretched its payment obligations before it entered court protection.
“Accounts payable grew increasingly past due as the Debtors sought to preserve cash,” Morando wrote in a Nov. 9 declaration.
During Chapter 11, vendors are to receive payment for authorized goods delivered and services rendered after the filing.
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