Business
THE CHILDREN’S PLACE EXTENDS TEMPORARY STORE CLOSURES AND PROVIDES AN UPDATE RELATED TO THE COVID-19 PANDEMIC
SECAUCUS, N.J., March 31, 2020 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), the largest pure-play children’s specialty apparel retailer in
About this update from Children's Place, Inc. (the)
[{"type":"text","content":"SECAUCUS, N.J., March 31, 2020 (GLOBE NEWSWIRE) -- The Children’s Place, Inc. (Nasdaq: PLCE), the largest pure-play children’s specialty apparel retailer in North America, today provided a business update related to the ongoing impact of the COVID-19 pandemic.\n Jane Elfers, President and Chief Executive Officer, said, “The Children’s Place continues to address the challenges associated with the ongoing COVID-19 pandemic. In this period of ongoing uncertainty, as we continue to focus on the safety and well-being of our associates and customers, we are announcing the continued closure of all of our U.S. and Canadian stores until further notice. We are also taking difficult but proactive actions to bolster our financial flexibility and structurally position our company for the long term.” Business OperationsBased on direction from federal, state and local government and health officials, and to ensure the safety and well-being of our associates and customers, the Company has taken the following actions: Suspended all store operations in the United States and Canada beginning March 18, 2020: Until further notice from federal, state and local government and health officials, all of our stores remain closed. The Company is not able to predict the timing of store re-openings at this time.Store sales were planned to represent approximately 65% of Q1 fiscal 2020 revenue with a significant portion of sales planned for the months of March and April. Our digital sales continue to accelerate with quarter-to-date demand up double digits versus last year. We have implemented strict safety protocols and additional compensation incentives at our distribution centers, allowing the Company to continue to service its customers through its e-commerce sites at www.childrensplace.com and www.gymboree.com. Actions Taken in Response to COVID-19 The Children’s Place is taking the following actions to provide additional financial flexibility: Executing a substantial reduction and/or deferral of expenses and capital expenditures, including an ongoing reduction in forward inventory receipts;Collaborated with vendor partners to extend payment terms;Finalizing the execution of the accordion feature on its revolving credit facility, which will provide an additional $50 million of liquidity;Evaluating its options on approximately 600 store lease events occurri...