Beloved Clothing Store Files For Bankruptcy, Nearly 600 AL Jobs At Risk In Planned Closure

Alabama shoppers could lose some of their local The Children's Place stores as the struggling children's clothing retailer seeks bankruptcy protection and searches for a buyer to keep the nearly 60-year-old chain in business.

The retailer has locations across Alabama, including stores in Birmingham, Huntsville, Mobile, Dothan and Leeds. Although the company says some retail closures are unavoidable, it has not identified which Alabama stores will close.

However, the company's financial troubles are already threatening hundreds of jobs in northeast Alabama.

According to a Worker Adjustment and Retraining Notification (WARN) notice filed with the state on Nov. 6, Children's Place Distribution plans to close its Fort Payne facility beginning Jan. 5, 2027.

The closure is expected to affect 593 workers, making it one of the more significant job-loss announcements in Alabama in 2026.

The notice identifies the action as a closure rather than a temporary layoff. It does not specify whether all affected positions will be eliminated on the same date.

In New Jersey, where The Children's Place is headquartered in Secaucus, the outlook is more definitive.

The retailer plans to close all 24 of its New Jersey stores, including Gymboree locations, by Feb. 4, 2027, according to a state-required layoff notice filed Nov. 6.

The closures will put approximately 732 employees out of work, Patch reported.

The fate of more than 500 stores in 43 other states remains uncertain.

The Children's Place and its sister brand, Gymboree, remain open for business, but the bankruptcy filing has brought deep discounts and some important changes for customers. All purchases made after Nov. 6 are final sales, and customers have a limited window to use gift cards and rewards points.

The retailer announced Sunday that it filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in New Jersey, seeking to sell substantially all its assets while continuing operations.

The company is negotiating with multiple potential buyers and hopes to find one willing to keep the business operating. Bids are due Dec. 9, and the company expects to complete the court-supervised sale process by the end of December.

In the meantime, the future of hundreds of stores across North America hangs in the balance.

Will Alabama Stores Close?

The Children's Place is clear about the need to shrink its footprint. The company's online store directory identifies locations in Alabama, including:

• Birmingham: Riverchase Galleria, 2000 Riverchase Galleria.
• Huntsville: Parkway Place, 2801 Memorial Parkway South.
• Mobile: The Shoppes at Bel Air, 3299 Bel Air Mall.
• Dothan: Wiregrass Commons, 900 Commons Drive.
• Leeds: The Shops of Grand River, 6200 Grand River Blvd. East.

"Unfortunately, we have determined that certain store closures will be necessary during this process," the company said in a customer advisory.

The company said it is evaluating its locations and will announce closures as decisions are finalized. For now, all retail locations remain open and are offering deep discounts on inventory.

Those sales are intended to raise cash while the retailer looks for a buyer, but the company acknowledges that liquidation could become necessary if its rescue effort fails.

Although a full liquidation isn't the desired outcome, the company said it must plan for the contingency that an operational sale may fail to materialize.

What Alabama Shoppers Should Know

The bankruptcy filing comes just as many Alabama families are shopping for holiday outfits, children's winter clothing and Christmas gifts. There are bargains to be had, but also some catches.

Here's what shoppers should know:

Returns and exchanges: Purchases made after Nov. 6 are final and cannot be returned or exchanged. Eligible purchases made between Oct. 23 and Nov. 6 may still qualify for returns or exchanges under the existing policy, subject to court approval.

Gift cards: The Children's Place and Gymboree gift cards will continue to be accepted for a limited period, subject to court approval. The company has not announced a final redemption date. Once that deadline passes, remaining balances will not be redeemable for cash.

Rewards points: Customers can continue redeeming My Place Rewards points temporarily, subject to court approval. The program will eventually be discontinued, and unused points will expire.

Online orders: The retailer expects online orders and deliveries to continue without interruption.

Discounts: Inventory sales are underway both online and in stores, with substantial markdowns.

The company is encouraging shoppers to use gift cards and rewards points while they are still valid rather than risk losing their value.

Can The Chain Survive?

The Children's Place has been dressing generations of American children for nearly six decades, building its business around affordable clothing for babies, toddlers and older kids.

But the company has struggled with declining sales, rising costs and competition in a retail market where shoppers have plenty of alternatives.

The bankruptcy filing gives the retailer an opportunity to restructure its finances while seeking a buyer willing to preserve the business.

"Today's announcement marks an important step in our efforts to secure the best path forward for The Children's Place," Rudy Morando, the company's co-chief restructuring officer, said in the announcement.

The company is seeking financing to keep operating during the bankruptcy proceedings, and it has asked the court for permission to continue paying employees and suppliers.

For Alabama, the immediate impact is already taking shape in Fort Payne, where hundreds of workers face the prospect of losing their jobs early next year.

Whether the company's retail locations across the state will survive depends in part on the outcome of the bankruptcy proceedings and the search for a new owner.