Children's Place, an American children's clothing retailer, has seen a dramatic turnaround in its financial fortunes. The company, which was teetering on the brink of bankruptcy due to liquidity issues and a poor Q4 report, experienced a significant stock surge after a new shareholder acquired more than 50% of the company, creating a change of control and default under its credit agreements. This move has raised questions about the intentions of the new shareholders, identified as heirs to a Saudi banking dynasty and two Saudi entities. In the wake of this development, Children's Place announced it had entered into a non-binding term sheet for a $130 million term loan to help it stay afloat. This news comes alongside a broader trend of family offices increasingly allocating their portfolios to alternative investments, with notable surges in the stock price of Children's Place, including increases of 80%, 120%, 90%, and a halt after a 160% increase, with March calls up by 14,000%.
Family offices are going on the offensive, trading cash for alternative assets https://t.co/Gq0LdqW7uO via @robtfrank @CNBC #FamilyOffice
Children's Place eyes $130 mln in new debt after Saudi family swoop https://t.co/hDPMp2BYJh https://t.co/rbUsDsLZoN
β οΈ CHILDREN'S PLACE EYES $130 MILLION IN NEW DEBT AFTER SAUDI FAMILY SWOOP (Reuters) The Children's Place said on Friday it had received an offer for a $130 million loan that could help it stay afloat, after the ailing U.S. retailer announced earlier this week that Saudiβ¦
$PLCE (+2.3% pre) The Company Announces That It Has Entered Into a Non-Binding Term Sheet for $130 Million Term Loan https://t.co/iJARYGGf7n
Why is a Saudi banking family taking a huge and sudden stake in America's like fourth-favorite children's clothier? @lizrhoffman has an idea. Also, I "uncover" that family offices are plowing out of stocks and into private credit. https://t.co/adflur36nc
The pursuit of alpha "KKR and McVey surveyed over 75 family office CIOs, who together manage ~$3B in assets. Family offices on average are allocating 52% of their portfolios to alternative investments right now, and that marks an increase of 200 basis points since 2020."
The curious case of $PLCE and the $GME 2.0 possibilities https://t.co/sIilfh5sC0
March $PLCE calls are up 14,000% today π π€£ Friendly reminder not to short illiquid calls! Many forget implied volatility can spike as well in calls of high short interest names https://t.co/pwFFIQIeDc
Two Saudi πΈπ¦ entities took a stake in Children's Place $PLCE, which was close to bankruptcy Up 90% today as shorts rush to cover https://t.co/Pqc7qQkAZX
$PLCE halted up 160% π³π³. https://t.co/aA7M6Syd7S
What is going on with $PLCE π³π³. Up 120%.
What do the heirs to a Saudi banking dynasty want with an American childrenβs clothing store teetering on the edge of bankruptcy? https://t.co/BhsYBUoFi7
$PLCE +80% with big stake built by firm Crazy! https://t.co/P3FqQtiuXe
Not sure I've ever seen anything like what's happening at $PLCE. Company reports awful Q4 and liquidity issues, stock cracks.... and a new shareholder steps in and buys >50% of the company in three days, creating a Change of Control / default under credit agreements. Wild