The Children’s Place announced that it has received correspondence from Snowball Compounding Ltd. and parties related to Mithaq Capital notifying the company that they own approximately 54% of the company’s outstanding shares of common stock and intend to nominate 11 persons to stand for election to The Children’s Place’s Board of Directors at the Company’s 2024 Annual Meeting of Shareholders. The company intends to accept Mithaq’s request to enter into discussions regarding the provision of financing to assist with the company’s liquidity needs. Any such financing would be subject to, among other things, lender approval and compliance with applicable law. As a result of Mithaq’s unsolicited acquisition of shares, Mithaq has triggered a Change of Control thereby causing an Event of Default under the company’s Amended and Restated Credit Agreement. The company is in discussions with its lenders to seek a waiver of the Event of Default.
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