Children’s Place completes Disney Store deal
Children’s retailer takes over US chain
Children’s Place Retail Stores has completed its $100m acquisition of the 313 outlet Disney Store chain in North America.
The deal, a key milestone in Disney’s exit from direct retailing, will see Children’s Place Retail operate the stores in the US and Canada under a long-term license.
A new subsidiary of Children’s Place, Disney Store North America, will take responsibility for the lease obligations, as well as the design and sourcing of mechandise featuring Disney characters. After two years, it will start to pay royalties to Disney on sales.
In October next year, Disney Store North America will launch an online store. The Walt Disney Company also plans to continue to operate the Disney Catalogue and maintain a Disney online retail presence.
Ezra Dabah, chairman and chief executive of Children’s Place, said: “This acquisition marks a significant milestone in the growth of The Children’s Place. We believe that the Disney brand, together with our retail expertise will be a powerful and profitable combination.”
Peter Murphy, chief strategic officer of The Walt Disney Company, said: “The Children’s Place management team has a proven track record of growing a unique and compelling retail concept.
“We believe their commitment to quality, the Disney brand, and entertainment retailing will maximise the Disney Store opportunity. We look forward to a long and rewarding relationship with The Children’s Place.”
Children’s Place currently operates 734 stores in the US, Canada and Puerto Rico.
Disney retains ownership of its UK and European Disney Store chain for the time being. It has been reported to have held negotiations with several potential buyers, including the management team.
