NY Daily News - Children's Place, operator of the Disney Store clothing chain, rose more than 5% after Fortune reported the company is up for sale.
Shares of Children's Place, down 62% this year, gained $1.17 to $23.92 yesterday.
The retailer hired investment bank Peter J. Solomon to advise it on a potential sale, Fortune said on its Web site, citing two people familiar with the situation. But Solomon spokeswoman Diane Coffey said in an e-mail yesterday that the firm hadn't been hired. Kathy Reitz, a Fortune spokeswoman, didn't have an immediate comment. Children's Place did not respond to requests for comment on the possible sale.
The report came after Children's Place CEO Ezra Dabah resigned at the board's request last month. This week, the company's auditor quit, and the retailer reduced its annual profit forecast.
Besides a slowdown in consumer traffic at its stores, the company faces a number of challenges, such as remodeling Disney locations on schedule, finding a new CEO, addressing pending lawsuits and completing Securities and Exchange Commission filings.
The Disney sites, which sell Winnie the Pooh, Mickey Mouse and Cinderella toys and clothing, account for a third of the retailer's revenue. Children's Place also operates 889 stores under its name.
No comments:
Post a Comment