Disney takes over Disney Stores from Children's Place

[TheRustyScupper]

BURBANK, Calif. - Walt Disney Co. said Thursday it has taken over the Disney Store chain in North America from Children's Place Retail Stores, and will close about 98 stores U.S. and two in Canada.

Specific financial terms weren't disclosed, but Secaucus, N.J.-based Children's Place said it will cost the company $50 million to exit the operations, at the bottom of its estimated range of $50 million to $100 million.

Walt Disney acquired about 220 Disney Stores in the U.S. and Canada. The deal was completed in conjunction with the bankruptcy proceedings Children's Place subsidiaries Hoop Retail Stores and Hoop Canada, which ran the Disney Store chain. The companies filed for Chapter 11 protection in March.

Children's Place will provide transitional support services to Disney for up to six months. After the deal closes, Children's Place said Hoop will continue with its bankruptcy and anticipates filing a plan of reorganization by the end of 2008.

"For The Children's Place, we can once again focus exclusively on building our core namesake brand and driving the business forward," said Chuck Crovitz, interim chief executive of the children's clothing chain. "For Hoop, the transfer of the DSNA business back to Disney maximizes the return to creditors, enables a substantial portion of the chain to continue operating and is in the best interest of Hoop's suppliers, landlords, creditors and others."

Children's Place took control of the stores in 2004. Crovitz said in March that the arrangement hadn't worked out.

In announcing its exit plan March 20, Children's Place said the Disney Stores recorded an operating loss of $92.1 million for the quarter that ended Feb. 2, and $107.3 million for the year.

Disney says company veteran James D. Fielding will become president of Disney Stores Worldwide, overseeing North American operations and the 107 Disney Stores in Europe

 

[remain seated please]

BURBANK, Calif. - Walt Disney Co. said Thursday it has taken over the Disney Store chain in North America from Children's Place Retail Stores, and will close about 98 stores U.S. and two in Canada.

In announcing its exit plan March 20, Children's Place said the Disney Stores recorded an operating loss of $92.1 million for the quarter that ended Feb. 2, and $107.3 million for the year.

TCP was on a strange fiscal year. I wonder if they put TDS on that schedule because of the time of year when they originally took the store over. This would mean that the quarter where they lost over $92 million included the holiday season. If that was the first quarter for them, then the stores have lost another $15 million since Feb.

I don't see how Disney can turn the remaining stores around. The stores were losing money (in similar amounts) long before TCP took them over. Since nobody will say officially that we are in a recession, things are just going to get worse after the transition is done.

Disney will never be able to sell this chain again. TDS already forced TCP into bankruptcy. The company wanted out of retail when they tried to unload the stores. They have nothing new to offer the consumers that they can't get anywhere else.

I think Disney has one option if they really want to keep the stores open. Revamp the entire Disney Store model. Create a new store that focuses on the "synergy" that the company is so proud of. The new store would combine all aspects of the Walt Disney Co. ABC, ESPN, Disney, et.al. This way they could merchandise the TV shows, and movies that don't fall under the traditional "Disney Store" banner.

This of course is an idea that might be too ambitious for Disney. My money is on a permanent phasing out of the entire chain over the next year.

 

[figment182]

x

 

[smriley]

As a former CM at TDS, I loved working there, however they closed my store where I was an ASM at the end of January. I just found out that they will be closing 2 stores around here. In the Cincinnati area, Tri-County Mall store will be closing, and in Dayton, Fairfield Commons store will be closing as well. I do not know when, but it will be happening

 

[Jenvenza]

While I am happy Disney is regaining control over Disney Stores, I am really hoping they dont close ours down! We only have one in Houston, that I am aware of, and I love it.

 

[mickeymark34]

Disney kept control of stores in Europe after the sale of the North American chain. During the bankruptcy proceedings, I read that they have been able to make the stores in Europe profitable over the last few years. Perhaps that is why they were so interested to reaquire the stores. Besides the fact that TCP could not sell the stores to anyone other than The Walt Disney Company. Regardless of what people think about Disney owning The Disney Store Chain again, I am one happy Cast Member, and I am looking forward to seeing the changes that will be happening in the near future.

 

[remain seated please]

Disney kept control of stores in Europe after the sale of the North American chain. During the bankruptcy proceedings, I read that they have been able to make the stores in Europe profitable over the last few years. Perhaps that is why they were so interested to reaquire the stores. Besides the fact that TCP could not sell the stores to anyone other than The Walt Disney Company. Regardless of what people think about Disney owning The Disney Store Chain again, I am one happy Cast Member, and I am looking forward to seeing the changes that will be happening in the near future.

Exactly what changes do you expect Disney to make now that it has the stores back?

 

[mickeymark34]

Costume changes, product changes, etc.

 

[mommaducktoo3]

I live in Florida.. and I know that they have closed 1 store.. close to me and the other store will be closing some time this month.. I am happy to say the store that is closest to me in Brandon will stay open.. I do wish they would change some things..

 

[FloridaGrandma]

I live in Florida.. I am happy to say the store that is closest to me in Brandon will stay open..

MommaDuck,
Is that store in the mall near the corner of US60 and I-75?

My sister lives near there and I may need another excuse to visit that area! LOL

 

[disneydawn6]

Exactly what changes do you expect Disney to make now that it has the stores back?

I know it wont happen but wouldn't it be wonderful to get collectibles back? I really miss the nice watches we use to sell... Oh those were the days My house is still full of artwork we use to sell. I miss the Henley's and embroidered shirts we use to have... They may have cost a little more but they were great quality. Wonder if we'll get our folding boards back? Lining up all the Mickey nose's??

 

[mickeymark34]

You never know what will happen. I saw what the new Disney Store logo looks like, which is pretty cool. Things are already changing, exactly one month from the official date that The Walt Disney Company bought the Disney Stores back. It will be exciting to see what else is going to change in the next few months.

 

[disneydawn6]

You never know what will happen. I saw what the new Disney Store logo looks like, which is pretty cool. Things are already changing, exactly one month from the official date that The Walt Disney Company bought the Disney Stores back. It will be exciting to see what else is going to change in the next few months.

I have not seen the logo yet. I have not worked for a few days. Hopefully it will more then just a logo. Some better merchandise would help, along with more adult merchandise. People use to come in to buy stuff for their kids and end up buying stuff for themselves too. When Disney decided to make the stores, "best in plush" and got rid of all our wonderful adult items, we started sliding....fast. Hopefully they have learned from their mistakes and will try to bring back some tried and true Disney Magic. TCP actually starting bringing back adult clothing and a small amount of kitchen items. I did love the Snow White garden stuff we got in. I think they were on the right track. Before we were sold we did not have anything but kids stuff so hopefully things will get better.....

When we opened we all had to go through Disney Traditions training. Maybe they should make everyone go through it again. A lot of the new people never did it and a lot of us older people could use a refresher course. I think it kind of unites a store so maybe it would be fun.

It's June now so I'm hoping to get our ID's soon...

 

[limeran]

I have not seen the logo yet. I have not worked for a few days. Hopefully it will more then just a logo. Some better merchandise would help, along with more adult merchandise. People use to come in to buy stuff for their kids and end up buying stuff for themselves too. When Disney decided to make the stores, "best in plush" and got rid of all our wonderful adult items, we started sliding....fast. Hopefully they have learned from their mistakes and will try to bring back some tried and true Disney Magic. TCP actually starting bringing back adult clothing and a small amount of kitchen items. I did love the Snow White garden stuff we got in. I think they were on the right track. Before we were sold we did not have anything but kids stuff so hopefully things will get better.....

When we opened we all had to go through Disney Traditions training. Maybe they should make everyone go through it again. A lot of the new people never did it and a lot of us older people could use a refresher course. I think it kind of unites a store so maybe it would be fun.

It's June now so I'm hoping to get our ID's soon...

I think you hit the nail on the head. The loss of the adult items really hurt the stores. You can buy only so many toys and plush.

 

[mickeymark34]

disneydawn, what was the Disney Traditions training? I would like to go through that training.

 

[disneydawn6]

disneydawn, what was the Disney Traditions training? I would like to go through that training.

My traditions training was 19 years ago when we first opened our store, so I'm sure it's a lot different now. It involved a trainer who came from WDW to talk about teamwork, synergy, Disney history, etc and ended up with a potato and a straw It lasted two days. The third day, the truck with all our merchandise rolled up to our store and we spent another 3 days stocking the store.

I was at a NFFC convention many years ago and one of the speakers was the guy who started Disney University and traditions. He came up with the Rosie the Riveter campaign during WWII and Walt Disney asked him to come up with a learning program for his CM's when they opened Disneyland. It was along time ago but I believe his name was Van France, though I could be wrong.

 

[mickeymark34]

That sounds very interesting. They need to do something like that now.

 

[TheDisneyGirl02]

I've gone through Traditions, not once, not twice but three times! Once at TDS and twice at WDW!

It's an amazing course and I do hope they bring it back.

 

[shirley 38]

I know it wont happen but wouldn't it be wonderful to get collectibles back? I really miss the nice watches we use to sell... Oh those were the days My house is still full of artwork we use to sell. I miss the Henley's and embroidered shirts we use to have... They may have cost a little more but they were great quality. Wonder if we'll get our folding boards back? Lining up all the Mickey nose's??

I totally agree with you. I was a CM for 10 years. We had something for everyone. We even kept a book to call guests when something came in that they collected.

I was from the King of Prussia store in Pa. which will be staying openI really really hope they do it right.