Quick answer: The Children’s Place is selling substantially all of its assets in its New Jersey Chapter 11 case, with bids due December 9, 2026 and a closing targeted for the end of December. Contracts the buyer wants will be assumed and assigned, and the company must pay your cure amount and show the buyer can perform. Contracts the buyer does not want will likely be rejected. If you receive a cure notice, check the amount and file any objection by the stated deadline. If you do not, you will usually be bound by the company’s number.
Who this affects
The Children’s Place, Inc. and 13 affiliates filed Chapter 11 on November 8, 2026 in the U.S. Bankruptcy Court for the District of New Jersey, Case No. 26-22682 (SLM), before Judge Stacey L. Meisel. A retailer of its size runs on hundreds of contracts: brand and character licenses, third-party logistics and warehousing, freight and parcel carriers, software and payment platforms, marketing agencies, store maintenance providers, and equipment leases. If your company is on the other side of one of those contracts, the sale process decides whether your contract survives and whether your old balance gets paid in full.
How assumption and assignment works
Section 365 of the Bankruptcy Code lets a debtor assume an executory contract and assign it to a buyer. Before it can do that, the debtor must cure monetary defaults, compensate for actual losses from the default, and provide adequate assurance that the buyer will perform in the future.
That is why assumption is valuable to a creditor. A contract counterparty whose agreement is assumed is typically paid its full cure amount, while a counterparty whose contract is rejected usually recovers only a fraction on an unsecured claim.
The cure notice: what to check
In a sale case, the debtor typically serves cure notices on counterparties to contracts that might be assumed. The notice lists each contract and the amount the debtor says it owes. Compare that number with your records and look for the items debtors most often miss:
- Invoices that were in dispute or not yet booked when the debtor pulled its numbers.
- Late charges, interest, and attorneys’ fees the contract allows.
- Amounts owed by a different debtor entity under the same master agreement.
- Charges that came due after the filing but before the assumption date.
Also check that the notice lists the right contract. A cure notice that names the wrong agreement or omits an amendment can cause problems after closing.
The objection deadline is not optional
The bidding procedures order will set a deadline to object to the cure amount and, usually, a later deadline to object to adequate assurance once the winning bidder is known. If you do not object on time, the court will typically treat you as having consented to the listed cure amount and to the assignment. Calendar both deadlines as soon as you receive the notice.
Can I block the assignment of my contract?
Usually not. Section 365(f) makes most anti-assignment clauses unenforceable in bankruptcy. There are important exceptions.
Under Section 365(c)(1), a contract cannot be assumed or assigned without the counterparty’s consent if applicable law excuses the counterparty from accepting performance from someone else. The Third Circuit applies the so-called hypothetical test to this question. Courts frequently treat non-exclusive intellectual property licenses, such as character and brand licenses for children’s apparel, as personal to the licensee. If you license characters or trademarks to The Children’s Place, your consent may be required before a buyer can take over your license, which gives you real leverage in the sale.
Even where you cannot block an assignment, you can insist on adequate assurance. Ask for the buyer’s financial information and object if the buyer cannot show it will perform.
Warehouses and carriers holding goods
A warehouse or carrier holding inventory with unpaid charges may have a possessory lien under Uniform Commercial Code Sections 7-209 or 7-307, which can make its claim secured. The debtor, however, can seek turnover of estate property, and the lienholder is entitled to adequate protection of its interest. Get advice before refusing to release goods, because an improper refusal can violate the automatic stay.
If your contract is not assumed
Contracts the buyer does not take are typically rejected. Rejection is treated as a breach just before the filing, and your damages become a general unsecured claim. Services you provide after the filing but before rejection are generally administrative expenses, so track them separately. Suppliers of goods have additional rights tied to delivery dates, including the 20-day priority under Section 503(b)(9).
Do not assume the buyer will pay your old balance just because it keeps doing business with you. A sale under Section 363(f) usually transfers assets free and clear of claims, and buyers generally take on only the liabilities they expressly agree to assume.
How we help contract counterparties
Bankruptcy Attorney Co. represents licensors, logistics providers, service providers, and other contract counterparties in Chapter 11 sale cases. As New Jersey bankruptcy attorneys who also practice in Delaware and Pennsylvania, we can appear for you in the Newark court where this sale will be decided. We review cure notices, file cure and adequate assurance objections, negotiate consent for license assignments, and prepare administrative and rejection damage claims.
If your company has a contract with The Children’s Place or Gymboree, call us at (856) 880-1010 or use the contact form on this page before the objection deadline passes.
Frequently Asked Questions
What is a cure notice in The Children’s Place bankruptcy?
A cure notice tells a contract counterparty that its contract may be assumed and assigned to the buyer in the sale and lists the amount the debtor says it must pay to cure defaults. Counterparties that disagree must object by the deadline in the notice or will usually be bound by that amount.
Will the buyer of The Children’s Place pay my old invoices?
Only if your contract is assumed and assigned, in which case the cure amount must be paid, or if the buyer expressly agrees to assume the liability. Assets sold under Section 363(f) are usually transferred free and clear of other claims.
Can a licensor block assignment of its license to the buyer?
Possibly. Section 365(c)(1) can require the counterparty’s consent where applicable law makes the contract non-assignable. In the Third Circuit, courts often apply that rule to non-exclusive intellectual property licenses, giving licensors leverage in the sale.
When is The Children’s Place sale?
The company set a bid deadline of December 9, 2026 and expects to complete the sale by the end of December 2026. The bidding procedures order sets the auction, objection, and sale hearing dates.
What happens to my contract if the buyer does not want it?
It will likely be rejected. Your damages become a general unsecured claim, while services provided after the November 8, 2026 filing and before rejection are generally administrative expenses.
About the Author
Jenny R. Kasen is the founding attorney of Bankruptcy Attorney Co., a boutique bankruptcy firm with offices in Wilmington, Delaware and Cherry Hill, New Jersey. She represents creditors and debtors before the U.S. Bankruptcy Courts for the District of Delaware, the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of Florida. Her practice includes creditor-side work in large Chapter 11 cases, preference and adversary proceeding defense, and Chapter 7, 11, 13, and Subchapter V cases.
Disclaimer: This article provides general information about The Children’s Place, Inc. Chapter 11 case as it stood on November 9, 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Court orders, deadlines, and the sale timeline can change quickly, so confirm current dates on the court docket or the claims agent’s case website, and speak with a lawyer about your specific situation. Attorney Advertising.