Talks on sale of US Disney Stores
Children’s Place hopes to acquire 330-store chain
Walt Disney is in talks to sell the Disney Store chain in North America to Children’s Place Retail Stores.
The confirmation of negotiations surprised US observers, who have been reporting that Disney has backtracked on plans to sell the chain of around 330 stores due to problems finding a buyer.
Children’s Place is an expanding retailer with stores based mainly in shopping malls, selling clothes targeted at young children. The company has about 700 stores of its own. It hopes to get a long-term license to operates the Disney Stores in the US and Canada. In any deal, Disney would want to retain ultimate control over the product range, which so far has proved a stumbling block in sale talks.
Disney would retain its Fifth Avenue flagship store in Manhattan and stores at Disney theme parks. Disney has changed its consumer goods strategy to move away from running its own stores on order to develop brand licensing partnership with major retailers. It has already closed around 200 Disney Store outlets in the USA and Canada.
Separate talks with two possible buyers for the UK and European Disney Store chain have been reported to have faltered over the terms of the deal Disney is offering.
