Children's Place Engages Lehman to Review Strategic Alternatives

The board of directors at Children’s Place Retail Stores, Inc. today announced that it has recently engaged Lehman Brothers to act as its financial advisor for a review of the company’s strategic alternatives to improve operations and enhance shareholder value. 

The board and management team are assessing a variety of options to improve business and the company’s competitive position, which may include possible organizational and operational improvements, capitalization, or other transactions.

The clothing retailer has been is locked in a boardroom tussle over the ouster of Ezra Dabah, who resigned as CEO in 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 the completion of the review, and there is no assurance that the review process will result in any changes to the company’s current organizational or operational structure, or lead to any transaction in particular. 

“The board of directors and management team are focused on strengthening the organization and positioning the company to take advantage of long-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 the company, our shareholders, and employees to initiate a comprehensive review of strategic alternatives for the business and to evaluate a variety of different options for enhancing shareholder value.”