Barington, Macellum Urge Children's Place To Boost Sales, Consider Sale

(RTTNews) - Activist investors Barington Capital and Macellum Advisors on Wednesday urged specialty childrens' apparel retailer the Children's Place Inc (PLCE) to boost its sales and margins, and also to seek strategic alternatives, including a sale of itself.

Barington Capital and Macellum Advisors represent a group of shareholders of the Children's Place Inc that collectively beneficially owns over two percent of the outstanding shares of the company.

According to Barington and Macellum, the Children's Place is an attractive investment opportunity at its current trading valuation due to its leading market share in the children's apparel market, its large store base coupled with a direct sourcing infrastructure. The company also has strong growth opportunities in e-commerce and international markets.

Despite its good potential, the Children's Place shares trade at a modest valuation due to investors' concern over the company's deteriorating operating performance since 2010 under the leadership of the current CEO Jane Elfers, Barington and Macellum said.

Barington and Macellum said they are confident that there are multiple ways to improve shareholder value including improvements in the company's sales and margins, inventory management and capital allocation.

Barington and Macellum further believe that there are likely a number of strategic and financial buyers who would be interested in acquiring the Children's Place at a significant premium in order to capitalize on the company's strong position in the children's apparel market, its stable operating cash flow, and substantial opportunities for working capital and operating improvements.