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 Disney News, Disney World News |
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Last Updated: Apr 21, 2009 - 9:08:32 AM
By wdwinfo.com
Mar 27, 2008
Following news of Disney retaking ownership of the Disney Store chain, Children's Place, the current owner, has filed for Chapter 11 protection.
Specifically, Hoop Holdings, a unit of Children's Place and operator of the Disney Store North America division, is seeking credit assistance during ongoing negotiations with Disney.
Any agreement will need the approval of bankruptcy court. Children's Place claims it will cost the company between $50 and $100 million to extricate itself from Disney. The initial contract prevents them from selling the division to any one other than the Walt Disney Company.
The decision to sell the Disney Stores followed a contract extension for the store modifications that Disney required. The Children's Place determined that these changes would not be cost effective and would further erode their earnings.
No official comment from Disney has been made following the announcement of the filing for bankruptcy protection.
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