The Children's Place sells Disney Store chain through Hoop Retail bankruptcy

By Caroline Salls

Pittsburgh, May 1 - The Childrens's Place Retail Stores, Inc. subsidiaries sold their North America Disney Store chain to The Walt Disney Co. through the bankruptcy cases of Hoop Retail Stores, LLC and Hoop Canada, Inc., according to a Disney news release.

Specifically, Disney acquired about 220 Disney Stores in the United States and Canada, with the actual number of acquired stores dependent upon the outcome of negotiations with landlords.

According to the sale motion, the purchase price will be $50 million to $55 million, depending on final inventory numbers.

Disney said it also obtained the right to conduct an orderly wind-down and closure of 98 Disney Stores in the United States and two Disney Stores in Canada, but it did not assume the leases for those stores.

In addition, Disney veteran James D. Fielding has accepted the position of president of Disney Stores Worldwide.

Hoop is a Secaucaus, N.J., company that designs, contracts to manufacture and sells merchandise under the Disney Store brand name. The company filed for Chapter 11 bankruptcy on March 26 in the U.S. Bankruptcy Court for the District of Delaware. Hoop's Chapter 11 case number is 08-10544.

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