Children's Place, Disney Settle Licensing Dispute

[crazy4wdw]

Children's Place, Disney Settle Licensing Dispute

June 08, 2007: 08:07 AM EST

The Children's Place Retail Stores (PLCE) said it's agreed to resolve assertions by Walt Disney Co. (DIS) that Children's Place committed material breaches of a licensing agreement to run Disney stores in North America.

Under the plan, Children's Place will remodel 234 existing Disney stores by the end of fiscal 2011 and will open at least 18 new Disney stores using the new store prototype.

The Secaucus, N.J., specialty retailer of children's merchandise said it also will complete a maintenance refresh program in 165 Disney stores by no later than June 30, 2008. The company is still planning on spending $175 million on the remodel and refresh programs.

Disney can require Children's Place to pay an $18 million penalty if it violates the agreement on three or more occasions, and can terminate the license agreement on five or more violations

 

[TheDisneyGirl02]

Well I guess that means my store will be renovated in the next few years! Should be interesting!

 

[Geoff_M]

Glad to hear the news... When we last stopped at the DS in Ft. Wayne, IN, I noticed that it was starting to look pretty disheveled. It was kind of depressing.