Home | Business News | Browse by Publication | F | Fair Disclosure Wire

The Children's Place Retail Stores, Inc. Conference Call to Provide Update On Exit of Disney Store North America Business - Final.

Article Excerpt
Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Good day and welcome to the Children's Place conference call. At this time, all participants are in a listen-only mode, and later there will be an opportunity to ask questions during our Q&A session. Please note this call may be recorded.

I will now turn the program over to Heather Anthony. Please begin.

HEATHER ANTHONY, IR CONTACT, THE CHILDREN'S PLACE: Thank you, operator, and good morning, everyone. Thanks for joining us today. On today's call is Chuck Crovitz, Interim Chief Executive Officer, who will have some prepared remarks this morning. Also on hand to answer your questions are Sue Riley, our Executive Vice President of Finance and Administration.

Before we begin, I'd like to remind participants that any forward-looking remarks made today are subject to the Safe Harbor statement found in today's press release, as well as in our SEC filings.

After Chuck's prepared remarks, we will take your questions. With that out of the way, I will now turn the call over to Chuck.

CHUCK CROVITZ, INTERIM CEO, THE CHILDREN'S PLACE: Thanks, Heather. Hello, everyone. I just have some brief remarks this morning and then we will, as Heather says, open it up for questions.

As you've likely seen, last night we issued a press release providing an update on our exit from the Disney Store business. As noted in the release, the Company's Hoop subsidiary that operates the Disney Stores North American chain filed Chapter 11 petitions under which Hoop would pursue a transfer of a substantial portion of the business to the Walt Disney Company. With limited strategic and financial options available under the license agreement that was entered into 2004, Hoop's Board of Directors has determined that pursuing the transfer of a majority of the business back to Disney to a Chapter 11 case is the best way to complete an orderly wind-down of Hoop's affairs. It will maximize the return to creditors and we hope it will enable a substantial portion of the chain to continue operating.

Just a few additional key points -- this action is completely consistent with last week's announcement, when we stated we had decided to exit the Disney North American business, that we were in advanced discussions with the Walt Disney Company, and that we were pursuing alternatives to implementing an exit from the business.

The bankruptcy action is specific to Hoop only. The Children's Place Retail Stores is not filing a Chapter 11 case. If we are able to complete the transaction as currently envisioned and we receive court approval, the Company will be released from future claims and liabilities that Disney may have against the Company.

The Company continues to expect to pretax cash exit costs to be within the previously stated range of $50...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!