Children’s Place sends letter to shareholders

In a letter to shareholders, Chairman of the Board Turki Saleh A. AlRajhi wrote, ” The full transition of governance of The Children’s Place was made on March 8, 2024. We took governance in the faith that we can protect and compound, at a reasonable rate of return, the per-share intrinsic value of TCP benefitting all fellow shareholders with whom I am aligned… Strategy Going Forward. We have no master plan. Master planning works perfectly in theory but more often fails in practice. We will always seek to be opportunistic, and the present board has enough skin-in-the-game and will take a more active role, not only in governance, but also in overseeing management’s capital allocation decisions. While we have influence as board members, we cannot eliminate all poor decisions. Even if we execute really well, some things just take time. Without going into specifics, below are some preliminary observations on the strategy that we expect management to execute: Capital Allocation… Liquidity and Debt… Operational Efficiencies… Operating Controls… Compensation Structure and Decentralization… Culture… No Quarterly Calls and Market Guidance… Transparency and Open Communication… We seek to follow a tell-it-like-it-is policy, and we reckon, this is the best form of proper communication and is important, particularly when things do not go well, which is inevitable from time to time. We, like all candid boards and management, are not infallible.”