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Children's Place ousts CEO over stock trades

September 27, 2007|From Bloomberg News

Children's Place Retail Stores Inc., which runs the Disney Store clothing chain, said Wednesday that Chief Executive Ezra Dabah had resigned after violating the company's stock-trading policies.

Dabah, CEO since 1991, failed to report an increase in his wife's holdings of the retailer's stock, Children's Place said. He also twice pledged the Secaucus, N.J.-based company's shares to a margin account during a "blackout period" without board approval.

The violations didn't have a material effect on operating results, the company said. The Children's Place board has been probing the retailer's internal controls and its stock option practices this year. Dabah didn't improperly benefit from the violations, the company said.

Children's Place shares rose $1.81 on Wednesday to $25.80.

The company runs 328 Disney Stores and 889 namesake clothing stores, mostly in shopping malls.

The company also said it had demoted its chief creative officer, who had violated expense policies. The executive, who Children's Place didn't name, will refund improperly charged expenses. The retailer said the charges weren't intentional.

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