The board of directors at Children’s Place Retail Stores,Inc. today announced that it has recently engaged Lehman Brothers to act as itsfinancial advisor for a review of the company’s strategic alternatives toimprove operations and enhance shareholder value.
The board and management team are assessing a variety ofoptions to improve business and the company’s competitive position, which mayinclude possible organizational and operational improvements, capitalization,or other transactions.
The clothing retailer has been islocked in a boardroom tussle over the ouster of Ezra Dabah, who resigned as CEOin September but remains on the board. He claims that a small group of the board engaged in a “power play” to oust him.
The board has yet to set a specific timeline for thecompletion of the review, and there is no assurance that the review processwill result in any changes to the company’s current organizational oroperational structure, or lead to any transaction in particular.
“The board of directors and management team are focused onstrengthening the organization and positioning the company to take advantage oflong-term opportunities through its Children’s Place and Disney Store brands,”Children’s Place interim CEO Chuck Crovitz said in a statement. “We believe it is in the best interest of thecompany, our shareholders, and employees to initiate a comprehensive review ofstrategic alternatives for the business and to evaluate a variety of differentoptions for enhancing shareholder value.”