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Disney buys back store chain from Children's Place

May 02, 2008|From Reuters

Walt Disney Co. has repurchased its North American Disney stores from Children's Place Retail Stores Inc., the companies said Thursday.

Disney said it bought back 220 outlets in the U.S. and Canada, and has the right to close about 100 of the stores. The final number will depend on negotiations with landlords, it said. Financial terms were not disclosed.

Secaucus, N.J.-based Children's Place said in March that it would exit the Disney Store chain, with plans to focus on its children's clothing chain. Disney confirmed then that it was in talks to take back stores.

Children's Place said it would provide support to Disney for up to six months and expected to incur exit costs of $50 million -- at the low end of its anticipated range of $50 million to $100 million.

Burbank-based Disney sold its struggling chain of 313 Disney Store outlets to Children's Place in 2004.

Shares of Disney rose 87 cents to $33.30. Children's Place jumped $1.70 to $24.95.

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