Why the 322 toys stores chain in US licensed by
Disney file Chapter 11?
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http://www.stockhouse.com/News/ReleaseDetail.aspx?n=6822754
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Mar 26, 2008 (PrimeNewswire via COMTEX News Network)
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Filing Does Not Apply to
Parent Company, The Children's Place Retail Stores, Inc. Pursuing
Transfer of Substantial Portion of Disney Store North America
Business to The Walt Disney Company Under Chapter 11
Case
SECAUCUS, N.J., March 26, 2008 (PRIME NEWSWIRE) -- Hoop
Holdings, LLC, a subsidiary of The Children's Place Retail Stores,
Inc. (Nasdaq:PLCE), today announced that Hoop Holdings, LLC and its
subsidiaries ("Hoop") D/B/A Disney Store North America ("DSNA")
have voluntarily filed petitions under Chapter 11 of the United
States Bankruptcy Code in the U.S. Bankruptcy Court for the
District of Delaware, and the Canadian subsidiary expects to file
under the Companies' Creditors Arrangement Act in Toronto, Canada.
Hoop intends to pursue the transfer of a substantial portion of the
DSNA business to an affiliate of The Walt Disney Company. Neither
Hoop's parent company, The Children's Place Retail Stores, Inc.,
nor any of its parent company's other subsidiaries is commencing a
Chapter 11 case.
These filings follow an extensive review of various strategic
alternatives for the DSNA business, which is run by Hoop pursuant
to a license agreement with The Walt Disney Company. Hoop and its
parent company have been engaged in advanced negotiations
concerning the transfer of a substantial portion of the DSNA
business to The Walt Disney Company. In connection with these
negotiations, Hoop's Board of Directors has determined, with the
limited strategic and financial options available under the license
agreement that its only alternative was to file bankruptcy.
Through these proceedings, Hoop expects to complete an orderly
wind-down of its affairs. The transaction that is currently being
negotiated is being pursued in order to maximize proceeds available
to Hoop stakeholders. The transaction under negotiation is subject
to the satisfaction of certain conditions, including approval of
the U.S. Bankruptcy Court and the Canadian Court, and is targeted
for completion by April 30, 2008.
In order to assist in the financing of the wind-down of Hoop's
affairs, and subject to court approval, Hoop has executed a
debtors-in-possession credit facility with Wells Fargo Retail
Financing, consisting of a $35 million revolving credit facility,
including a sub-facility for letters of credit.
Hoop has appointed a Chief Restructuring Officer, Perry M.
Mandarino of Traxi, LLC, a firm that specializes in restructuring.
Mr. Mandarino will work with Hoop's Board in guiding the business
through the Chapter 11 process.
Hoop Holdings, LLC and its subsidiaries design, contract to
manufacture and sell merchandise under the licensed "Disney Store"
brand name. As of March 24, 2008, Hoop owned 322 Disney Stores in
North America.
This news release was distributed by PrimeNewswire,
www.primenewswire.com
SOURCE: The Children's Place Retail Stores, Inc.
Traxi, LLC Perry Mandarino, Chief Restructuring Officer
212-465-1935''
2.parent company
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