The Children's Place, Inc. (PLCE) disclosed on February 14th that it received a formal notification from Mithaq Capital SPC declaring that they held approximately 54% of The Children's Place, Inc.'s outstanding shares of common stock. This majority ownership by Mithaq has triggered a change in control, thereby leading to an event of default under the amended and restated credit agreement. The Children's Place is currently in conversation with its lenders to obtain a waiver for the default event.
Mithaq, along with its associated parties, intends to nominate 11 director candidates for election to The Children's Place board. The children's apparel retailer is also considering accepting Mithaq's proposal for discussions about providing financing to help with the company's liquidity needs.
In the pre-market trading session on Thursday, The Children's Place's shares witnessed a surge of 22%.
