Children's Place Bankruptcy: What Shoppers and Workers Face Now

The Children's Place filed for Chapter 11 bankruptcy protection on Nov. 8, and the filing already changes what shoppers can do with returns, gift cards and reward points. It also puts hundreds of jobs at risk, including 593 workers at a distribution facility in Fort Payne, Alabama, according to Patch.

The company, based in New Jersey, says it wants to sell substantially all of its assets to a buyer that would keep the business running. It has also warned that some store closures are unavoidable and that a sale to continue operations may not happen.

What changes for shoppers right now

All Children's Place and Gymboree stores remain open, the company says, and many are advertising deep discounts. Erie Times-News reported signs at the Millcreek Mall store in Erie, Pennsylvania, offering 30% to 60% off. Patch outlined the main changes for customers:

• Returns and exchanges: Purchases made after Nov. 6 are final sales. Eligible purchases from Oct. 23 to Nov. 6 may still be returned or exchanged under the existing policy, subject to court approval.
• Gift cards: Children's Place and Gymboree gift cards will be accepted for a limited time, subject to court approval. No final redemption date has been announced. After the deadline, remaining balances cannot be redeemed for cash.
• Rewards points: My Place Rewards points can be redeemed temporarily, subject to court approval. The program is expected to end, and unused points will expire.
• Online orders: The company expects online orders and deliveries to continue without interruption.

The company is urging customers to use gift cards and points while they are still valid.

Why it matters: jobs and local stores

The most concrete job losses so far come from two state-required layoff notices filed Nov. 6, Patch reported. In Alabama, Children's Place Distribution plans to close its Fort Payne facility beginning Jan. 5, 2027, affecting 593 workers. The notice describes a closure, not a temporary layoff, and does not say whether every position will end on the same date. Patch called it one of the more significant job-loss announcements in Alabama in 2026.

In New Jersey, the retailer plans to close all 24 of its stores in the state, including Gymboree locations, by Feb. 4, 2027. Patch reported that about 732 employees would lose their jobs.

The fate of more than 500 stores in 43 other states is unclear. Alabama has locations in Birmingham, Huntsville, Mobile, Dothan and Leeds, but the company has not said which stores will close. It said it is reviewing its locations and will announce closures as decisions are made.

Local landlords are also waiting for answers. A spokesman for the Cafaro Co., which owns the Millcreek Mall in Erie, told Erie Times-News that his team had heard nothing from the retailer. He said the company's best guess is that it is looking for a buyer, and that the mall would like to see the business continue in some form.

Why the outcome is uncertain

Erie Times-News noted that a message on the company's website says "All stores closing," even as the company says it hopes to find a buyer. Its statements say it must prepare for the possibility that a sale to continue the business cannot be achieved. Patch reported that the company acknowledges liquidation could become necessary if the rescue effort fails.

The retailer has been evaluating its store footprint to focus on its strongest locations, according to its statement. Erie Times-News reported that second-quarter sales fell 18% from the same quarter in 2025. Patch said the chain has also faced rising costs and heavy competition.

The company is negotiating with multiple potential buyers, according to Patch. It is also seeking financing to keep operating during the case and has asked the court for permission to keep paying employees and suppliers.

What happens next

Bids are due Dec. 9, and the company expects to finish the court-supervised sale process by the end of December, Patch reported. The outcome will help determine which stores stay open and how long gift cards and points remain usable. The U.S. Bankruptcy Court in New Jersey must approve the return, gift card and rewards terms.

Rudy Morando, the company's co-chief restructuring officer, called the filing an important step toward the best path forward for the business.

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Around Prague, based on reporting by Patch, Erie Times-News