UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant to
Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of
report (Date of earliest event reported):
April
8,
2008
|
THE
CHILDREN’S PLACE RETAIL STORES, INC.
|
|
(Exact
Name of Registrants as Specified in Their
Charters)
|
|
Delaware
|
|
(State
or Other Jurisdiction of
Incorporation)
|
|
0-23071
|
31-1241495
|
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
915
Secaucus Road, Secaucus, New Jersey
|
07094
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
|
(201)
558-2400
|
|
(Registrant’s
Telephone Number, Including Area
Code)
|
|
Not
Applicable
|
|
(Former
Name or Former Address, if Changed Since Last
Report)
|
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see
General
Instruction A.2. below):
| o |
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
| o |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
| o |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
| o |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
| Item 5.02 |
Departure
of Directors or Principal Officers; Election of Directors; Appointment
of
Principal Officers.
|
(e)
As
previously reported, Ezra Dabah, a member of the board of directors (the
“Board”)
of The
Children’s Place Retail Stores, Inc. (the “Company”),
resigned as the Company’s CEO on September 24, 2007. In connection with his
resignation the Company and Mr. Dabah executed a letter agreement (the
“Letter
Agreement”)
on
April 8, 2008 whereby the terms of Mr. Dabah’s severance arrangements were
finalized.
In
May
2006, the Company entered into an amended and restated employment agreement
providing for Mr. Dabah to serve as our CEO until May 12, 2009 (the
“Employment
Agreement”).
At
the time of Mr. Dabah’s resignation, the Board determined that Mr. Dabah’s
resignation would be treated for purposes of the Employment Agreement as a
termination of his employment by the Company without cause.
The
terms
of the Letter Agreement are consistent with this determination and provides
that: (1)
Mr.
Dabah shall continue to receive coverage under the Company’s self-insured
medical, dental and hospitalization plans for a period up to the period
permitted under COBRA, and deliver to Mr. Dabah a commercially available
medical, dental and prescription benefits policy to continue coverage of
reasonably equivalent benefits (as provided by the Company to other senior
executives) at a reasonably equivalent cost to the Company for the remaining
portion of the 36-month period commencing on November 24, 2007 (the
“Coverage
Period”),
(2)
Mr.
Dabah shall receive on (i) June 2, 2008, $6,296 to cover the cost of replacing
the group life insurance policy coverage in face amount of $750,000 during
2008,
and (ii) January 5, 2009, $12,592 to cover the cost of replacing the group
life
insurance policy coverage in the face amount of $750,000 during the remainder
of
the Coverage Period, (3)
the
Company shall reimburse Mr. Dabah on June 2, 2008 (or such later date during
2008 that the Company receives documentation confirming payment by Mr. Dabah)
for any documented premium payment due and paid by Mr. Dabah after November
23,
2007 and prior to June 2, 2008, and continue to pay the remaining premiums
during the Coverage Period (of $20,000 per year) on the existing individual
insurance policy on Mr. Dabah’s life, (4)
the
Company shall pay, on (i) June 2, 2008 a lump sum payment of $66,667, to cover
the costs of a car service during 2008, and (ii) January 5, 2009 a lump sum
payment of $133,333 to cover the cost of a car service during the remainder
of
the Coverage Period, (5)
the
Company shall pay, on (i) June 2, 2008 a lump sum of $3,337, reflecting the
value of Company matching contributions under the 401(k) plan, that Mr. Dabah
would have received during 2008, and (ii) January 5, 2009 a lump sum of $6,675,
reflecting the value of Company matching contributions under the 401(k), and
(6)
provided
that Mr. Dabah has not rescinded the Letter Agreement on or before April 15,
2008, the Company will pay Mr. Dabah, on April 15, 2008 a lump sum payment
equal
to $3,000,000 plus interest from November 23, 2007 until the date of payment
(less applicable withholdings). All of the above compensation was expensed
by the Company in fiscal 2007.
In
addition, Mr. Dabah’s outstanding options will remain exercisable until the
earlier of their expiration dates or 90 days following his termination of
service as a member of the Board.
2
Pursuant
to the terms of the Letter Agreement, Mr. Dabah agreed to release the Company
from any and all claims pertaining to benefits under the Employment Agreement
and all applicable employment laws identified in annex 1 of the Letter
Agreement. In addition, under the Employment Agreement Mr. Dabah agreed that
for
a period of five years following the termination of his employment he would
not
participate in or promote, directly or indirectly, any businesses directly
competing with the Company’s business or solicit our directors or employees to
provide services to any other company or interfere with any person doing
business with the Company or disparage the Company or furnish confidential
information of the Company to any other person (except as required by
law).
A
copy of
the Letter Agreement is attached hereto as Exhibit 10.1 and is incorporated
by
reference herein.
| Item 7.01 |
Regulation
FD Disclosure
|
On
April
10, 2008, the Company issued a press release regarding the Company’s sales
results for the fiscal month ended April 5, 2008.
A
copy of
this press release is included as Exhibit 99.1 hereto.
| Item 8.01 |
Other
Events
|
On
April
10, 2008, the Company issued a press release announcing Jill Kronenberg, Senior
Vice President, General Merchandise Manager for The Children’s Place brand since
October 2006, has resigned from the Company to spend more time with her family.
Dina Sweeney and Celeste Risimini-Johnson, have been promoted to Group Vice
President and Vice President, respectively, and will divide the responsibilities
of Ms. Kronenberg.
A
copy of
this press release is included as Exhibit 99.2 hereto.
| Item 9.01 |
Financial
Statement and Exhibits.
|
| (d) |
Exhibits.
|
| Exhibit 10.1 |
Letter
Agreement, dated April 8, 2008, between the Company and Ezra
Dabah.
|
| Exhibit 99.1 |
Press
release, dated April 10, 2008, issued by the Company regarding March
Sales.
|
| Exhibit 99.2 |
Press
release, dated April 10, 2008, issued by the Company regarding Merchandise
Management Change.
|
3
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date:
April 10, 2008
|
THE
CHILDREN’S PLACE RETAIL STORES, INC.
By:
/s/ Patrica
Gray
Name: Patricia
Gray
Title: Senior
Vice President, General Counsel and
Secretary
|
4
April
8, 2008
VIA
FEDERAL EXPRESS
&
ELECTRONIC DELIVERY (dennis.block@cwt.com,
william.mills@cwt.com)
Dennis
Block, Esq.
William
Mills, Esq.
Cadwalader,
Wickersham & Taft LLP
One
World Financial Center
Suite
32-106
New
York. NY 10281
Tel:
212 504-5555
Fax:
212 504-5557
E-mail:
dennis.block@cwt.com,william.mills@cwt.com
Dear
Dennis:
This
letter agreement sets forth the terms of the severance benefits payable under
Ezra’s May 12, 2006 employment agreement with The Children’s Place Retail
Stores, Inc. (the “Company”). The terms set forth in this letter agreement are
the same as presented in my letter to you dated December 28, 2007 with
additional changes you requested in our conversation on April 8,
2008.
After
you
have had a chance to review this letter agreement with Ezra, kindly have Ezra
execute this letter agreement in the appropriate space provided below for his
signature to evidence his agreement with its terms (along with his election).
Once I have received the fully executed copy of the letter agreement, I will
process the payment of those benefits payable as a lump sum described below
under “Section 6.01(a) Lump Sum Payment.”
The
benefits pertaining to Ezra’s separation, and terms under which the Company is
prepared to pay these benefits, are described below.
Section
5.01 Notice.
The
Company continued salary payments and benefits through November 23, 2007, the
60th day following September 24, 2007, the day of Ezra’s separation from the
Company’s employ. We understand Ezra has raised an issue regarding the nature of
his
separation.
Under his position, it is not clear that these salary continuation payments
(which totaled $173,077) were in fact required to be made. However, the Company
elected to make salary continuation payments for the 60 day period to address
the notice provision set forth in section 5.01 of the employment agreement,
under an interpretation most favorable to Ezra.
Dennis
Block, Esq.
April
8,
2008
Page 2
of
7
Section
6.01(a) Lump Sum Payment.
As
noted
in my letter to you dated December 18, 2007, I understand Ezra has been advised
that regulations issued under Section 409A of the Internal revenue Code of
1986,
as amended (“Section 409A”) provide the basis for a claim that the lump sum
payable under Section 5.01 may be paid prior to June 2, 2008 without adverse
tax
consequences under Section 409A. As agreed, should Ezra wish to receive this
amount within the 6 month period following his separation (which we now believe
may be anytime prior to June 2, 2008), the Company will require an
indemnification to cover the potential tax penalty exposure for failure to
properly report under Section 409A, in the form set forth in this letter
agreement. In any event, the amount of the payment would be equal to $3 million,
plus interest at the applicable federal short-term rate calculated from November
23, 2007 until the date of payment (less applicable withholdings).
Section
6.01(b) and 4.02 Benefits.
Bonus,
Option Vesting.
No
bonus was payable with respect to the 2007 fiscal year, and none of Ezra’s
outstanding options were unvested, so the only benefits payable under this
section are with respect to benefits generally provided to senior executives
as
described in Section 4.02.
Medical,
Dental Insurance.
To
address the provision of benefits for the 36-month period commencing November
24, 2007 (the “Coverage Period”), the Company has continued to provide benefits
to Ezra under its self-insured medical, dental and prescription plans. I have
been advised Ezra completed his COBRA election forms and is being provided
the
coverage described in this paragraph to him. The Company will continue to
provide such benefits for any period up to the eighteen-month period permitted
under COBRA and, following such period, will purchase from an unaffiliated
insurer commercially available insurance coverage to provide to Ezra such
medical, dental and prescription plan benefits as are reasonably equivalent
to
those medical, dental and prescription plan benefits provided by the Company
to
the Company’s other senior executives (other than those benefits provided under
or pursuant to separately negotiated individual employment agreements or
arrangements) at a reasonable equivalent cost for the remaining period of the
Coverage Period. The Company reserves the option to purchase such commercially
available coverage for such benefits at any time during the Coverage Period
in
full satisfaction of this provision. Under Section 6.03, any medical, dental
or
prescription benefits provided to Ezra by an unaffiliated person during the
Coverage Period shall be primary to the benefits provided by the Company. I
have
been advised that payment of these benefits is clearly exempt from the
applicability of Section 409A.
Life
Insurance Policy to Replace Ezra’s current Group Insurance.
The
cost to replace Ezra’s current group life insurance policy in face amount of
$750,000 is $18,888, which the Company will pay to Ezra on June 2, 2008, or
per
your request is reflected in Option 2 attached hereto, since the payment would
not be exempt from the applicability of Section 409A.
Dennis
Block, Esq.
April
8,
2008
Page 3
of
7
Individual
Life Insurance.
During
the Coverage Period, the Company will continue to pay $20,000 in annual premiums
on the existing individual insurance policy on Ezra’s life, provided that Ezra
will pay any premium payment due after November 23, 2007 and prior to June
2,
2008 directly to the insurance carrier, and the Company shall
reimburse
Ezra
for
such premium payment upon the later of a) the Company’s receipt of documentation
confirming the payment, and b) June 2, 2008, or as otherwise requested by you
as
reflected in Option 2 attached hereto.
Services
of a Personal Driver.
The
Company will also pay Ezra the sum of $200,000, which has been determined to
be
the reasonable costs of a car service to be available to Ezra for 8 hours a
day
during the Coverage Period, on June 2, 2008, or as otherwise requested by you
as
reflected in Option 2 attached hereto.
Other
Benefits.
The
only retirement plan provided by the Company is the 401(k) Savings Plan. Ezra
has already exceeded the covered compensation limit for 2007 and will not be
eligible to participate in the future since he is not an active employee.
However, we have agreed that the value of this benefit to Ezra is $10,012,
which
the Company will pay on June 2, 2008, or as otherwise requested by you as
reflected in Option 2 attached hereto. Ezra is ineligible to participate in
the
Company’s stock purchase plan due to his level of ownership in the Company.
Finally, the Company’s short-term disability plans provide benefits in the form
of salary continuation and the Company’s long term disability plan is designed
to replace a portion of lost income due to disability. Since Ezra’s severance
benefit already compensates him for his salary during the Coverage Period,
there
is no income to replace. In addition, the Company has been unable to locate
an
insurer that will provide this coverage to an unemployed
individual.
Stock
Options.
The
1997
Stock Option Plan pursuant to which Ezra’s options were granted provides that
his options “shall terminate immediately upon the termination for any reason of
the holder’s employment or services,” with the holder having 90 days following
such termination in which to exercise his options. While the language could
be
construed otherwise, the Company, through its Compensation Committee on the
advice of counsel, has taken the position that the options will remain
exercisable until the earlier of their expiration dates and 90 days following
his termination of service as a board member, in accordance with applicable
Company policies. The terms of the January 27, 2006 Transfer Restriction
Agreement between Ezra and the Company remain in effect.
In
summary, to address all of Ezra’s benefits remaining payable by the Company, in
addition to the $173,077 it has already paid to Ezra, the Company proposes
two
options by which Ezra’s benefits will be delivered. Please have Ezra execute his
name following the option he selects, in the signature block provided for this
purpose. By executing his name under either option, Ezra agrees he is
voluntarily and knowingly releasing the Company (including its affiliated
companies), and the officers, directors and agents thereof (collectively, the
“Releasees”) from any and all claims pertaining to benefits under the May 12,
2006 employment agreement between him and all applicable employment laws
identified in Annex 1, and the Company’s reporting of such benefits to
applicable taxing authorities. Ezra has the right to consider this release
for
21 days and, for seven (7) calendar days following his execution of this letter
agreement, to revoke it. To be effective, his revocation must be in writing
and
delivered by hand or overnight mail and received by the Company within the
seven
day period. This letter agreement will not be effective or enforceable until
the
seven day revocation period has expired. This release does not waive rights
or
claims that may arise when this release is executed. In addition, in the case
of
the second option, Ezra agrees to indemnify the Releasees for, and hold the
Releasees harmless from and against, any and all claims, liabilities and
exposures arising out of any determination that the payment to Ezra of benefits
prior to June 2, 2008 does not comply with Section 409A (it being understood
and
agreed that each of Ezra and the Company will be responsible for the fees and
expenses of its own counsel).
Dennis
Block, Esq.
April
8,
2008
Page 4
of
7
Option
1
and Option 2 follow on page 5 and 6 respectively.
Any
deliveries to Ezra will be made by (a) certified mail, return receipt requested,
(b) recognized overnight courier or (c) personal delivery service, in each
case
addressed to Ezra Dabah at 35 Pheasant Road, Great Neck, New York 11024 and
will
be deemed delivered, in the case of (a), on the fifth business day following
the
date postmarked, in the case of (b), the next business day, and, in the case
of
(c), the date of delivery to the delivery service as documented by the Company’s
records.
Please
let me know immediately in writing if Ezra would prefer deliveries to be made
to
an alternate address.
Please
feel free to call me with any questions or comments.
Very
truly yours,
The
Children’s Place Retail Stores, Inc.
| By | /s/ Patricia A. Gray | |
|
Patricia
A. Gray
Senior
Vice President, General Counsel and Secretary
Direct:
(201) 453-7472
Facsimile:
(201) 453-7560
|
Dennis
Block, Esq.
April
8,
2008
Page 5
of
7
Option
1:
The Company will make the following payments and deliveries to Ezra Dabah,
in
full satisfaction of its obligations under Ezra’s employment
agreement:
(a)
continued coverage under the Company’s self-insured medical, dental and
hospitalization plans for a period up to the period permitted under COBRA,
and
delivery to Mr. Dabah of a commercially available medical, dental and
prescription benefits policy to continue coverage of reasonably equivalent
benefits (as provided by the Company to other senior executives) at a reasonably
equivalent cost to the Company for the remaining portion of the Coverage Period,
(b) deliver, on June 2, 2008, the amount of $18,888 to cover the cost of
replacing the group life insurance policy coverage in face amount of $750,000
with a term of 3 years of coverage,
c)
reimburse Mr. Dabah on June 2, 2008 (or such later date as the Company receives
documentation confirming payment by Mr. Dabah) for any documented premium
payment due and paid by Mr. Dabah after November 23, 2007 and prior to June
2,
2008, and continue to pay the remaining premiums during the Coverage Period
(of
$20,000 per year) on the existing individual insurance policy on Mr. Dabah’s
life,
(d)
deliver, on June 2, 2008 a lump sum payment of $200,000, to cover the costs
of
the car service during the Coverage Period,
(e)
deliver, on June 2, 2008 a lump sum of $10,012, reflecting the value of Company
matching contributions under the 401(k) plan, and
(f)
deliver, on June 2, 2008, a lump sum payment equal to $3,000,000 plus interest
calculated at the applicable federal short-term rate from November 23, 2007
until the date of payment (less applicable withholdings).
Accepted
and Agreed, in accordance with the terms set forth in this letter
agreement:
|
Dated:
|
|||
| Ezra Dabah |
Dennis
Block, Esq.
April
8,
2008
Page 6
of
7
Option
2:
The Company will make the following payments and deliveries to Ezra Dabah,
in
full satisfaction of its obligations under Ezra’s employment
agreement:
(a)
continued coverage under the Company’s self-insured medical, dental and
hospitalization plans for a period up to the period permitted under COBRA,
and
delivery to Mr. Dabah of a commercially available medical, dental and
prescription benefits policy to continue coverage of reasonably equivalent
benefits (as provided by the Company to other senior executives) at a reasonably
equivalent cost to the Company for the remaining portion of the Coverage Period,
(b) deliver, on (i) June 2, 2008, the amount of $6,296 to cover the cost of
replacing the group life insurance policy coverage in face amount of $750,000
during 2008, and (ii) January 5, 2009, the amount of $12,592 to cover the cost
of replacing the group life insurance policy coverage in the face amount of
$750,000 during the remainder of the Coverage Period,
(c)
reimburse Mr. Dabah on June 2, 2008 (or such later date during 2008 that the
Company receives documentation confirming payment by Mr. Dabah) for any
documented premium payment due and paid by Mr. Dabah after November 23, 2007
and
prior to June 2, 2008, and continue to pay the remaining premiums during the
Coverage Period (of $20,000 per year) on the existing individual insurance
policy on Mr. Dabah’s life,
(d)
deliver, on (i) June 2, 2008 a lump sum payment of $66,667, to cover the costs
of the car service during 2008, and (ii) January 5, 2009 a lump sum payment
of
$133,333 to cover the cost of the car service during the remainder of the
Coverage Period,
(e)
deliver, on (i) June 2, 2008 a lump sum of $3,337, reflecting the value of
Company matching contributions under the 401(k) plan, that you would have
received during 2008, and (ii) January 5, 2009 a lump sum of $6,675, reflecting
the value of Company matching contributions under the 401(k)
(f)
provided that you have executed on April 8, 2008 and have not rescinded this
agreement on or before April 15, 2008, the Company will deliver at the close
of
business on April 15, 2008 a lump sum payment equal to $3,000,000 plus interest
calculated at the applicable federal short-term rate from November 23, 2007
until the date of payment (less applicable withholdings).
Accepted
and Agreed, in accordance with the terms set forth in this letter
agreement:
| /s/ Ezra Dabah |
Dated:
April 8, 2008
|
|
| Ezra Dabah |
Dennis
Block, Esq.
April
8,
2008
Page 7
of
7
ANNEX
1
Federal,
state or local employment statutes or civil rights laws, including but not
limited to:
Title
VII
of the Civil Rights Act of 1964, as amended
Age
Discrimination in Employment Act
Old
Workers Benefit Protection Act
Americans
with Disabilities Act
Family
and Medical Disabilities Leave Act
Fair
Labor Standards Act of 1938 as amended by the Equal Pay Act of 1963 and compared
state laws
Employment
Retirement Income Security Act of 1974
New
Jersey Conscientious Employee Protection Act
New
Jersey Law Against Discrimination;
New
Jersey Family Leave Act
New
Jersey Wage Payment Act
New
York
Human Rights Act
FOR
IMMEDIATE RELEASE
THE
CHILDREN’S PLACE RETAIL STORES, INC. REPORTS MARCH SALES
RESULTS
Secaucus,
New Jersey - April 10, 2008 - The Children’s Place Retail Stores, Inc. (Nasdaq:
PLCE)
today
announced sales of $160.1 million for the five-week period ended April 5, 2008,
a 3% increase compared to sales of $155.7 million for the five-week period
ended
April 7, 2007. Comparable store sales decreased 3% compared to last year’s 5%
comparable store sales increase.
Total
Sales (millions):
|
March
2008
|
March
2007
|
%
Increase
|
Year-to-Date
2008
|
Year-to-Date
2007
|
%
Increase
|
|
|
The
Children’s Place
|
$
160.1
|
$
155.7
|
3%
|
$
271.5
|
$
251.8
|
8%
|
Comparable
Store Sales Increase/(Decrease):
|
March
2008
|
March
2007
|
Year-to-Date
2008
|
Year-to-Date
2007
|
|
|
The
Children’s Place
|
(3)%
|
5%
|
1%
|
4%
|
As
a
result of the Company’s decision to exit the Disney Store North America (“DSNA”)
business, the Company will report the results of the
DSNA business as discontinued operations from the beginning of the fiscal year
and therefore will no longer provide monthly sales results for the DSNA
business. The discontinued operations will be reflected in the Company’s Form
10-Q for the first quarter ended May 3, 2008.
In
a separate press release this morning, the Company announced that Jill
Kronenberg, Senior Vice President, General Merchandise Manager, has resigned
in
order to spend more time with her family, and that it is promoting Dina Sweeney
and Celeste Risimini-Johnson who between them will divide the responsibilities
of Ms. Kronenberg. For more information, please see the press
release.
In
conjunction with today’s March sales release, you are invited to listen to the
Company’s pre-recorded monthly sales call, which will be available beginning at
7:30 a.m. Eastern Time today through Thursday, April 17, 2008. To access the
call, please dial (402) 220-2668 or you may listen through the Investor
Relations section of the Company’s website, www.childrensplace.com.
The
Children’s Place Retail Stores, Inc. is a leading specialty retailer of
children's apparel and accessories. The Company designs, contracts to
manufacture and sells high-quality, value-priced merchandise under the
proprietary “The Children’s Place” brand name. As of April 5, 2008, the Company
owned and operated 906 The Children’s Place stores and its online store at
www.childrensplace.com.
-
more
-
Page
2
This
press release (and above referenced call) may contain certain forward-looking
statements regarding future circumstances. These forward-looking statements
are
based upon the Company's current expectations and assumptions and are subject
to
various risks and uncertainties that could cause actual results to differ
materially. Some of these risks and uncertainties are described in the Company's
filings with the Securities and Exchange Commission, including in the “Risk
Factors” section of its reports on Forms 10-K and 10-Q. Risks and uncertainties
relating to the exit of the DSNA business, including the risk that the
transaction with The Walt Disney Company may not be approved or may not occur,
the risk that any plan or reorganization may not be approved, the risk that
claims may be asserted against the Company or its subsidiaries other than Hoop,
whether or not such claims have any merit, and
that the Company will need to devote substantial resources to defend such
claims, the
risk that Disney may bring litigation against the Company and assert various
claims under the Guaranty Agreement and other agreements relating to the
Company's operation of the DSNA business ,the risk that the Company may not
be
able to access, if necessary, additional sources of liquidity or obtain
financing on commercially reasonable terms or at all, the risk that the Company
will be unsuccessful in gauging fashion trends and changing consumer
preferences, the highly competitive nature of the Company’s business and its
dependence on consumer spending patterns, which may be affected by the downturn
in the economy, as well as risks and uncertainties relating to other elements
of
the Company’s strategic review, could cause actual results, events and
performance, including aggregate estimated exit costs, to differ materially.
Readers (or listeners on the call) are cautioned not to place undue reliance
on
these forward-looking statements, which speak only as of the date they were
made. The Company undertakes no obligation to release publicly any revisions
to
these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this release does not
constitute an admission by the Company or any other person that the events
or
circumstances described in such statement are material.
| CONTACT: | The Children’s Place Retail
Stores, Inc.
Heather
Anthony, Senior Director, Investor Relations, (201) 558-2865
Media:
Leigh Parrish/Diane Zappas, FD, (212)
850-5600
|
###
FOR
IMMEDIATE RELEASE
THE
CHILDREN’S PLACE RETAIL STORES, INC. ANNOUNCES MERCHANDISE
MANAGEMENT
CHANGE
Secaucus,
New Jersey - April 10, 2008 - The Children’s Place Retail Stores, Inc. (Nasdaq:
PLCE)
today
announced Jill Kronenberg, Senior
Vice President, General Merchandise Manager for The Children’s Place brand since
October 2006, has resigned from the Company to spend more time with her family.
Dina Sweeney and Celeste Risimini-Johnson, have been promoted to Group Vice
President and Vice President, respectively, who between them will divide the
responsibilities of Ms. Kronenberg.
Commenting
on Ms. Kronenberg’s departure, Chuck Crovitz, Interim Chief Executive Officer,
stated, “We thank Jill for the many contributions she has made to the
merchandising organization and wish her the best of luck in the future. Jill
has
been instrumental in our efforts to enhance our merchandise offerings, the
initial results of which we have experienced over the Holiday and Spring
seasons.”
Said
Ms.
Kronenberg, “I
have appreciated being part of The Children's Place team and believe the brand
is headed in the right direction with exciting fashion, color coordinated
outfitting, and great value. I am honored to have worked with such a talented
and dedicated group of people and wish the Company all the best. I am looking
forward to this next stage in my life and spending more time with my
family.”
Ms.
Sweeney and Ms. Risimini-Johnson are both merchandising veterans of The
Children’s Place, each having spent over 15 years with the Company. For the past
three years Ms. Sweeney, 42, has overseen the Company’s Canada business, most
recently serving as Vice President, Canada, which has experienced substantial
growth and profitability under her leadership. In addition to overseeing the
Company’s Canada business, in 2007 she was promoted to oversee the Company’s
fast growing e-commerce business. Prior to this, she held several positions
of
increasing responsibility within the merchandising organization, most recently
having served as Director of Merchandising.
Ms.
Risimini-Johnson, 38, most recently held the position of Senior Director, New
Business Initiatives. In 2006, Ms. Risimini-Johnson led the Company’s efforts to
launch its store-within-a-store shoe initiative which the Company introduced
in
2007. In 2002, Ms. Risimini-Johnson was promoted to oversee the Company’s outlet
division, which during her tenure experienced 30% sales growth on a compounded
annual basis. Prior to this, she held several positions of increasing
responsibility within the merchandising organization, most recently having
served as Director of Merchandising. Ms. Risimini-Johnson joined The Children’s
Place in 1992.
Mr.
Crovitz concluded, “We are delighted to promote Dina and Celeste into these much
deserved roles. Dina and Celeste are valued members of our team who have been
instrumental to the success of our business over the years. Dina and Celeste
are
intensely passionate about The Children’s Place brand and what it stands for. We
anticipate a smooth leadership transition from Jill to Dina and Celeste and
believe the momentum we are experiencing inside the merchandising organization
will result in continued improvements to our assortments.”
This
morning the Company reported its March sales results in a separate press
release. For more information, please see the press release.
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more
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The
Children’s Place Retail Stores, Inc. is a leading specialty retailer of
children's apparel and accessories. The Company designs, contracts to
manufacture and sells high-quality, value-priced merchandise under the
proprietary “The Children’s Place” brand name. As of April 5, 2008, the Company
owned and operated 906 The Children’s Place stores and its online store at
www.childrensplace.com.
This
press release may contain certain forward-looking statements regarding future
circumstances. These forward-looking statements are based upon the Company's
current expectations and assumptions and are subject to various risks and
uncertainties that could cause actual results to differ materially. Some of
these risks and uncertainties are described in the Company's filings with the
Securities and Exchange Commission, including in the “Risk Factors” section of
its reports on Forms 10-K and 10-Q. Risks and uncertainties relating to the
exit
of the DSNA business, including the risk that the transaction with The Walt
Disney Company may not be approved or may not occur, the risk that any plan
or
reorganization may not be approved, the risk that claims may be asserted against
the Company or its subsidiaries other than Hoop, whether or not such claims
have
any merit, and
that the Company will need to devote substantial resources to defend such
claims, the
risk that Disney may bring litigation against the Company and assert various
claims under the Guaranty Agreement and other agreements relating to the
Company's operation of the DSNA business ,the risk that the Company may not
be
able to access, if necessary, additional sources of liquidity or obtain
financing on commercially reasonable terms or at all, the risk that the Company
will be unsuccessful in gauging fashion trends and changing consumer
preferences, the highly competitive nature of the Company’s business and its
dependence on consumer spending patterns, which may be affected by the downturn
in the economy, as well as risks and uncertainties relating to other elements
of
the Company’s strategic review, could cause actual results, events and
performance, including aggregate estimated exit costs, to differ materially.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they were made. The Company
undertakes no obligation to release publicly any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
The
inclusion of any statement in this release does not constitute an admission
by
the Company or any other person that the events or circumstances described
in
such statement are material.
| CONTACT: | The Children’s Place Retail
Stores, Inc.
Heather
Anthony, Senior Director, Investor Relations, (201) 558-2865
Media:
Leigh Parrish/Diane Zappas, FD, (212)
850-5600
|