By Ben Glickman
Shares of Children’s Place fell sharply on Friday after the company said it was considering strategic alternatives as it looks for new financing.
The stock was down 41%, to $11.73, Friday afternoon, erasing earlier gains and bringing shares to their lowest intraday level in more than 20 years. Shares have shed 72% of their value in the last year.
The children’s specialty retailer said early Friday that it had been working with advisors, lenders and potential lenders to secure new financing.
The company said that it was weighing strategic alternatives for if it is unable to obtain additional capital.
Children’s Place expects it had $45 million in total liquidity as of Feb. 3, and anticipates its total debt will be $277 million on that date.
The company said based on preliminary results for the fourth quarter that it now expects to post an adjusted operating loss due to aggressive discounting during the holiday season, higher than expected split shipments to meet e-commerce demand and increased inventory valuation.
Children’s place also slashed its guidance for sales in the period to $454 million to $456 million, compared with previous outlook of $460 million to $465 million.
Write to Ben Glickman at [email protected]
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