Shares of The Children’s Place, Inc. (PLCE) have surged 60.59% to $23.31 Thursday following a shareholder update, in which the company announced they have been notified by Snowball Compounding and parties related to Mithaq Capital about the acquisition of 54% of the company’s stock. Further, they informed the children’s apparel retailer that they plan to nominate 11 persons to stand for election to the company’s Board at the 2024 Annual Meeting of Shareholders.
The Children’s Place also said they intend to accept Mithaq’s request to discuss the provision of financing to address the company’s liquidity needs.
Mithaq’s unsolicited acquisition of shares has triggered a Change of Control, leading to an ‘event of default’ under the company’s credit agreement, and the company said it is in discussion with lenders to seek a waiver.
“The Board and the Company’s senior leadership team are committed to acting in the best interests of all shareholders. The Children’s Place shareholders are not required to take any action at this time,” said the company in a statement.
The Children’s Place has a global retail and wholesale network that includes over 500 stores in North America, 4 digital storefronts and distribution in 16 countries.