US children's clothing retailer The Children's Place has filed for Chapter 11 bankruptcy protection in New Jersey and will seek a court-supervised sale of substantially all of its assets, the company announced on Monday.

The Secaucus, New Jersey-based retailer, listed on Nasdaq as PLCE, said it had voluntarily filed petitions in the United States Bankruptcy Court for the District of New Jersey. It is pursuing a sale under Section 363 of the US Bankruptcy Code, with the aim of continuing the business as a going concern and preserving its brands, The Children's Place and Gymboree.

The company said it was in discussions with multiple parties about potential transactions and would ask the court to approve a competitive marketing and sale process. Parties have been asked to submit bids by 9 December 2026, and the company expects to complete the court-supervised sale process by the end of December.

The filing lists both assets and liabilities of between $500 million and $1 billion. The chain has been supported by Shariah-compliant loans from majority shareholder Mithaq Capital of Saudi Arabia, which has provided more than $208 million in financing.

The retailer warned on 2 November that it was preparing to file for bankruptcy protection within a week, and liquidation sales began at its stores and website shortly afterwards. Its latest filed results showed net sales of $241.8 million in the quarter to 1 August, down 18.9 per cent on a year earlier, with a net loss of $31 million.

All stores and online sites remain open for now, the company said. It has asked the court for permission to keep paying wages, benefits and vendors, and is seeking recognition of the US proceedings in Canada so its Canadian assets can join the sale.