TCP to sell back Disney Stores

[Exp.626Stitch]

Hi Everyone,

As a Cast Member at the Disney Stores, we just found out this morning that TCP is in talks with Disney World to sell 2/3 of the stores back. Here's an article about it.

Children's Place to dump Disney Store chain Thursday, March 20, 2008 BY JOAN VERDONSTAFF WRITER Secaucus-based The Children’s Place Retail Stores, Inc. has decided to get a divorce from The Walt Disney Company and dump the Disney Store chain it acquired four years ago in a much-hailed deal.

The Children’s Place said Thursday it is in discussions to give the 335-store Disney retail chain back to its parent company. The company said it is in advanced negotiations that would allow Disney to regain control of two-thirds of the stores.

The announcement came as The Children’s Place announced a fourth-quarter loss of $58.5 million, and a net loss for the full year of $59.6 million. The company also said it will eliminate 80 positions after shedding the Disney chain, and will not fill 50 open positions, for a combined workforce reduction of 30 percent.

The Children’s Place and Disney Store marriage has been rocky from the start. The Children’s Place acquired the money-losing Disney retail operation for no money down, promising to invest $50 to $100 million in upgrading the Disney stores.

The two companies immediately began squabbling about The Children’s Place’s plans for the Disney stores, and The Chidren’s Place found they didn’t have any more luck than Disney in boosting sales at the stores.

Children's Place executives will speak to investors in a conference call at 10 a.m. today.
Secaucus-based The Children’s Place Retail Stores, Inc. has decided to get a divorce from The Walt Disney Company and dump the Disney Store chain it acquired four years ago in a much-hailed deal.

The Children’s Place said Thursday it is in discussions to give the 335-store Disney retail chain back to its parent company. The company said it is in advanced negotiations that would allow Disney to regain control of two-thirds of the stores.

The announcement came as The Children’s Place announced a fourth-quarter loss of $58.5 million, and a net loss for the full year of $59.6 million. The company also said it will eliminate 80 positions after shedding the Disney chain, and will not fill 50 open positions, for a combined workforce reduction of 30 percent.

The Children’s Place and Disney Store marriage has been rocky from the start. The Children’s Place acquired the money-losing Disney retail operation for no money down, promising to invest $50 to $100 million in upgrading the Disney stores.

The two companies immediately began squabbling about The Children’s Place’s plans for the Disney stores, and The Chidren’s Place found they didn’t have any more luck than Disney in boosting sales at the stores.

Children's Place executives will speak to investors in a conference call at 10 a.m. today.

 

[lesleyd75]

I don't blame them, why would people spend money on disney stuff in the Disney Store when they can get it elsewhere for much cheaper. I always get excited about going in when I see one and then when inside the store I leave without buying anything 'cause it all seems so expensive.
I love Children's Place and hope they aren't in trouble. I would be very sad to see this store go, or stop its amazing sales!

 

[dancin Disney style]

I agreee the the DS is too expensive. I only buy things when they have a sale.

 

[KNovacovschi]

Does this mean no more Disney store....booo....I love the Disney store....

 

[celebration.babe.347]

Does this mean no more Disney store....booo....I love the Disney store....

i too am employed at the disney store....i think becoming disney authentically again is great!! while it does likely mean a significant price hike for the consumers and less variety in the stores, becoming a "cast member" officially is thrilling. However, givren the economy right now i cannot whole heartedly say that it would be a good decision on Disney's part.They are under no obligation to buy back the stores so it is concievable that the stores could dissappear.

 

[Ms. Disney]

Any word on whether the Cdn Disney stores will stay open or closed? I heard that the sign on the (yet-to-be-opened new store) at Heartland in Mississauga is now gone. Anyone hear about this or the other Cdn stores?

Thanks