What The Children's Place Bankruptcy Means for the 732 New Jersey Workers Facing Layoffs

The Children's Place filed for Chapter 11 protection late on Sunday in the Newark bankruptcy court, and in New Jersey a state layoff notice already covers 732 of its workers. The kids' clothing chain plans to close its two dozen New Jersey stores and is ending operations in the state by early February. For now its stores and e-commerce sites remain open and continue to serve customers. For Metaintro readers who work for the chain, in an office or on a shop floor, this guide covers what the filing changes, what New Jersey law requires for laid-off workers, what help the state offers and which industries added jobs.

What Exactly Did The Children's Place File, and What Happens Next?

The company voluntarily filed petitions for chapter 11 relief in the United States Bankruptcy Court for the District of New Jersey, announcing the move from Secaucus, New Jersey on November 8, 2026. It wants to sell substantially all of its assets, pursuant to section 363 of the U.S. Bankruptcy Code, and it is in discussions with multiple parties regarding potential transactions that would keep the business going.

The timeline is short. The company is asking buyers to submit bids by December 9, 2026, and it expects to complete the Court-supervised sale process by the end of December 2026. To pay for the process, it plans a new term loan facility provided by its existing secured lenders.

Interest is already on the table. In a court filing, restructuring adviser Lorie Beers put the count at nine proposals to acquire some or substantially all assets. Before the filing, the company had been considering offers from both liquidators and a group of investors, Bloomberg reported, as carried by Quartz. The company's aim is a sale process with the goal of continuing the business as a going concern.

In plain terms, a chapter 11 debtor usually remains in possession, has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A sale outside the normal course of business is different, because then the debtor must obtain permission from the court.

How Many New Jersey Jobs Does the Layoff Notice Cover?

The company's entry in the state's 2026 WARN notice archive was posted in November and gives an effective date of 2/4/27.

The notice is not tied to one building. The notice covers jobs in Atlantic, Bergen, Camden, Essex, Gloucester, Hudson, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset and Union counties. Under the state law behind the list, an establishment may be a single location or a group of locations, including any facilities located in this State.

The notice was filed Friday with New Jersey regulators, and the stores closing include those in Blackwood, Cherry Hill, and Deptford.

The notice covers 732 employees statewide at the North Jersey-based company, and the state's list gives no split between store staff and office workers. It joins earlier 2026 notices on the same state list, which add to the New Jersey layoffs total for 2026.

The company wrote that it is experiencing financial difficulties and has not found a buyer to purchase its assets and operations, according to the Philadelphia Inquirer report.

What Happens to Stores Outside New Jersey and in Canada?

The chain is much bigger than its New Jersey footprint. It has more than 500 stores in the United States and Canada, and through franchisees and partners it has large presences in Mexico and the Middle East, including in Israel and Saudi Arabia.

Pennsylvania is different. The company operates 22 stores in that state, and regulators there had not received a layoff notice from the company as of Friday afternoon.

Canadian stores are part of the same process. The company is seeking recognition of the U.S. chapter 11 proceedings in Canada to include its Canadian assets and operations in the sale process.

A clearance is also under way in stores. Inventory liquidations began on November 6, and the company has a consulting agreement with a joint venture of GA Group, Tiger Group, and SB360 Capital Partners to help carry out those sales. Subject to court approval, the retailer intends to continue its ongoing inventory sales across its store fleet, sales meant to boost liquidity and operational flexibility. On Friday its website was advertising 25%-60% off all products in-store and online, with the small print reading All sales final.

Will Workers Keep Getting Paid During the Bankruptcy?

The company is asking for that. It is filing customary motions seeking authorization to continue payment of employee wages and benefits, maintain certain customer programs, and pay vendors for goods and services provided after the filing. It anticipates that these customary motions will be approved at its first day hearing this week.

Court approval of that first-day relief would let the company continue meeting certain obligations and maintain critical business functions while the sale runs.

Payroll taxes have rules too. In chapter 11 cases, the U.S. trustee sets requirements for the debtor in possession on matters that include paying current employee withholding and other taxes.

Employees and other stakeholders with questions can call the claims agent. The claims agent, Omni Agent Solutions, takes calls at (866) 205-3149 (U.S. and Canada toll free) or (818) 510-4678 (International), and an inquiry email address is listed in the company's release.

We recognize the significance of this development for our employees, customers, vendors, and other partners, and we are committed to conducting an efficient and transparent sale process, Co-Chief Restructuring Officer Rudy Morando said, according to the company's release.

What Does New Jersey Law Say About Notice and Severance?

The state law is N.J.S.A. 34:21-1 et seq., and changes to it took effect on April 10, 2023. For an employer with 100 or more employees, it requires notice not less than 90 days before the first job ends, or the federal period if that is longer.

That notice goes to the labor commissioner, the local chief elected official, each employee whose employment is to be terminated and any collective bargaining units. It must include a disclosure of the amount of the severance pay owed and a statement of any employee rights with respect to wages, severance pay, benefits, pension or other terms.

The severance rule is the part to read closely. In a covered closing or mass layoff, each worker whose job is ended is owed severance pay equal to one week of pay for each full year of employment. If the notice comes late, the employer must add an additional four weeks of pay.

The pay rate used is the higher of two figures. It is the average regular rate over the last three years or the final regular rate of compensation paid to the employee, whichever rate is higher. Under the law, no waiver of the right to severance provided pursuant to this section shall be effective without approval of the waiver by the commissioner or a court of competent jurisdiction.

One limit matters. The state labor department has neither enforcement authority, nor rulemaking authority under the Act, so it does not enforce the severance rules. The company's bankruptcy release does not mention severance.

What Help Can Laid-Off New Jersey Workers Get From the State?

The state's role is the Rapid Response team. It assists both employers and workers involved in a closing or permanent mass layoff, and the law gives workers the right to receive information, referral and counseling from that team. Employers must also give the team on-site work-time access to the employees.

The services on the state's WARN page include these.

• Explanation of Unemployment Insurance (UI) benefits and eligibility requirements and help filing UI claims
• Reemployment services, including referrals to available jobs, One-Stop Career Center registration, Labor Market Information, Jersey Job Clubs, and resume development assistance
• Training assistance, including an introduction to state and federal retraining programs available through New Jersey Community Colleges
• Targeted Job Fair assistance and help with job solicitation campaigns

Group meetings with staff are held on the employer's schedule, and program information is provided, including information on how to file for Unemployment Insurance Benefits. The Rapid Response staff can be reached at RapidResponse@dol.nj.gov or 1-800-343-3919.

How Did a Retailer Founded in 1969 End Up in Chapter 11?

The chain was founded in 1969 and sells apparel for newborns through preteens. Its annual revenue has declined every year since 2021, and it closed an additional 300 locations nationwide in 2020 and 2021.

Sales fell again in the latest reported quarter. In the three months ending August 1, revenue was $241.8 million, an 18.9% decline from the prior year, comparable retail sales fell 16.7% and the company lost $31 million US.

The balance sheet tells the same story. At the end of that quarter, the company had assets of $742.3 million US and liabilities of $881.3 million. Beers pointed in the court filing to declining sales and profitability, competitive and promotional pressures, rising costs and significant liquidity strains.

Leadership has also turned over. In early November, Chief Financial Officer John Szczepanski stepped into the roles of acting president and principal executive officer after the departure of interim CEO Asif Seemab, Bloomberg reported, as carried by Quartz. Seemab had taken the job in July, when Muhammad Umair resigned as CEO. The company has sold Gymboree clothing since purchasing the Gymboree brand for $76 million in 2019.

Who Is the Saudi Backer, and Has It Kept Funding the Chain?

The majority owner is Mithaq Capital, a family office for Saudi Arabia's wealthy Al Rajhi family. It became the largest shareholder in 2024 after acquiring 54% of the company's outstanding equity, and it now holds a 61.1 per cent equity stake in the company according to a court filing.

Mithaq has supported the retailer for years with Shariah-compliant loans, Bloomberg reported, as carried by Quartz. In a September update, the company disclosed it had taken an additional $25 million from Mithaq, following a $15 million draw in July. Mithaq did not immediately respond to requests for comment from Reuters on Monday.

The share price has dropped too. The shares closed Friday at 32.2 cents and traded down 42% at 18.6 cents in premarket trading on Monday.

Which Industries Added Jobs in October, and Where Does Retail Stand?

Total nonfarm payroll employment rose by 165,000 in October, while the unemployment rate changed little at 4.1 percent, in figures the U.S. Bureau of Labor Statistics released on Friday, November 6, 2026.

Retail itself was flat. Retail trade was among the industries where employment showed little change over the month. Payroll employment rose elsewhere, as employment in professional and business services increased by 70,000 in October, health care added 42,000 jobs, transportation and warehousing added 25,000 jobs, reflecting growth in couriers and messengers (+17,000) and manufacturing employment continued to trend up (+19,000).

Part-time work for economic reasons rose in October. The number of people employed part time for economic reasons increased by 339,000 to 4.8 million in October. Average hourly earnings for private-sector production and nonsupervisory employees rose by 12 cents, or 0.4 percent, to $32.75.

What This Means for Children's Place Workers, and What Should You Do Next?

For New Jersey staff, the notice filed with state regulators sets an end date for jobs in the state and says the company had not found a buyer. Get ready before the sale process ends, whether your next step is another store job or a move from retail experience into another job.

• Know your severance math. Write down your start date and your last three years of pay now.
• Read your notice line by line. Check the severance figure on your notice against your years of service.
• Do not sign away severance in a hurry. A severance waiver does not take effect without approval by the commissioner or a court.
• Use the free state help. Rapid Response offers referrals to available jobs, resume help and an introduction to retraining programs at New Jersey community colleges.
• Aim where jobs grew. In October, employment increased in professional and business services, in health care, and in transportation and warehousing.

Lacey Kaelani, Metaintro's CEO, puts it this way: A bankruptcy sale decides what happens to the brand, but your notice decides what happens to you. Count your years of service, keep your pay records and start your search while you still have a paycheck.

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People Also Asked

Q: Is The Children's Place closing all its stores?

A: Not at this stage. Its stores and e-commerce sites remain open during the sale process, but the chain plans to close its two dozen New Jersey stores.

Q: How many New Jersey workers will lose their jobs?

A: The state's 2026 WARN notice archive lists 732 workers affected at The Children's Place, with an effective date of 2/4/27.

Q: Do laid-off New Jersey workers get severance?

A: New Jersey law requires severance pay equal to one week of pay for each full year of employment for covered layoffs, plus four more weeks if notice is short, and the company's bankruptcy release does not mention severance.

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