Beloved Clothing Store Files For Bankruptcy, Putting CA Locations At Risk

California 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 48 locations in California. Although the company says some closures are unavoidable, it has not identified which locations will close.

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 it has 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 Local Stores Close?

The Children's Place is clear about the need to shrink its footprint. The company currently operates the following stores in California:

• Arden Fair: 1689 Arden Way, Sacramento
• Atlantic Square: 2160 South Atlantic Blvd., Monterey Park
• Camarillo Premium Outlets: 950 Camarillo Center Drive, Camarillo
• Desert Hills Premium: 48400 Seminole Drive, Cabazon
• Fashion Fair Mall: 605 East Shaw Ave., Fresno
• Galleria at Tyler: 1262 Galleria at Tyler, Riverside
• Gilroy Premium Outlets: 8300 Arroyo Circle, Gilroy
• Gran Plaza Outlets: 888 West Second St., Calexico
• Great Mall of Bay Area: 401 Great Mall Drive, Milpitas
• Hanford Mall: 1675 West Lacey Blvd., Hanford
• Imperial Valley Mall: 3451 South Dogwood Ave., El Centro
• Inland Center: 238 Inland Center Drive, San Bernardino
• Lake Elsinore Outlets: 17600 Collier Ave., Lake Elsinore
• Lakewood Center: 366 Lakewood Center, Lakewood
• Las Americas: 4459 Camino de la Plaza, San Ysidro
• Los Cerritos Center: 239 Los Cerritos Center, Cerritos
• Main Place Santa Ana: 2800 N. Main St., Santa Ana
• Montclair Place: 5040 Montclair Plaza Lane, Montclair
• Montebello Town Center: 2068 Montebello Town Center, Montebello
• Moreno Valley Mall: 22500 Town Circle, Moreno Valley
• Northridge Fashion Center: 9301 Tampa Ave., Northridge
• Northridge Mall: 724 Northridge Mall, Salinas
• Oakridge Mall: 925 Blossom Hill Road, San Jose
• Ontario Mills: 4543 Mills Circle, Ontario
• Outlets at Orange: 20 City Boulevard West, Orange
• Pacific Avenue: 6423 Pacific Ave., Huntington Park
• Panorama Mall: 8401 Van Nuys Blvd., Panorama City
• Pismo Beach Premium Outlets: 333 Five Cities Drive, Pismo Beach
• Plaza Bonita: 3030 Plaza Bonita, National City
• Plaza Mexico: 3170 E. Imperial Highway, Lynwood
• San Francisco Premium Outlets: 3370 Livermore Outlets Drive, Livermore
• Solano Town Center: 1350 Travis Blvd., Fairfield
• South Bay Galleria: 1815 Hawthorne Blvd., Redondo Beach
• Southbay Pavillion: 20700 Avalon Blvd., Carson
• Southland Mall: 618 Southland Mall, Hayward
• Stonewood Center: 423 Stonewood St., Downey
• Sunvalley Mall: 311 Sunvalley Mall, Concord
• The Mall of Victor Valley: 14400 Bear Valley Road, Victorville
• The Shops at Palm Desert: 72-840 Highway 111, Palm Desert
• The Streets at Brentwood: 2545 Sand Creek Road, Brentwood
• Tejon Ranch: 5701 Outlets at Tejon Parkway, Arvin
• Vacaville Premium Outlets: 101k Nut Tree Road, Vacaville
• Valencia Town Center: 24201 Valencia Blvd., Valencia
• Valley Plaza: 2701 Ming Ave., Bakersfield
• Visalia Mall: 2031 South Mooney Blvd., Visalia,
• West Valley Mall: 3200 North Nagle Road, Tracy
• Westfield Culver City: 6000 Sepulveda Blvd., Culver City
• Yuba Sutter Mall: 1215 Colusa Ave., Yuba City

"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 locations remain open and are offering discounts of up to 60 percent on all 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 Shoppers Should Know

The bankruptcy filing comes just as many California 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 reorganize 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.