alt Disney has reacquired the Disney store chain in north America from New Jersey-based kids clothing chain operator, Children's Place Retail Stores. The stores which had taken up the management of the Disney Stores in 2004 was finding it increasingly difficult to keep it as a profitable unit. Children's Place said that the Disney Stores recorded an operating loss of $92.1 million for the financial quarter that ended February 2, and $107.3 million for the complete year. In fact Hoop Retail Stores and Hoop Canada (units of Children's Place Retail Stores) which actually ran the Disney Store chain have filed for bankruptcy. Moreover, according to Children's Place, going by the current scenario it did not seem that even by pumping additional investments, the situation could be salvaged in terms of economic returns.

Though specific financial terms were not disclosed sources within Children's Place have stated that it will cost the company around $50 million to exit the operations.Walt Disney will close around 98 Disney Stores in the US and two in Canada. To ensure a smooth transition in terms of management, Children's Place will provide transitional support services to Disney for up to six months. ... more