Quick Answer
A retail bankruptcy does not end for vendors when the stores close or the business is sold. In case after case, including Rite Aid, Bed Bath & Beyond and Forever 21, vendors first fought to get paid for what they shipped, then were sued, sometimes a year or more later, to return payments they had received before the filing. Children’s Place vendors, suppliers and freight providers should plan for both stages now. Our firm has represented vendors, landlords, carriers and other creditors at each of these stages in other retail bankruptcies.
Owed money by The Children’s Place? Call (302) 214-0777 today. The reclamation deadline is November 28, 2026 and bids are due December 9, 2026. We offer a free, no-obligation consultation and can review your account the same day.
The Children’s Place Case in Brief
The Children’s Place, Inc. and 13 affiliates, including Canadian entities, filed Chapter 11 on November 8, 2026 in the U.S. Bankruptcy Court for the District of New Jersey, Case No. 26-22682 (SLM), before Judge Stacey L. Meisel. The company reported about $881 million in debt and is selling substantially all of its assets, with bids due December 9, 2026. Store-closing sales are underway at some locations.
Whether a retail case is in Wilmington or Newark, the stages for vendors are much the same.
Stage 1: The First Weeks
What we have seen in past retail cases: Vendors that moved quickly to document 20-day goods claims, send reclamation demands and negotiate post-petition terms protected the most value. Vendors that kept shipping on old terms sometimes ended up with unpaid administrative claims when a case ran short of money.
For Children’s Place vendors now:
- Goods received on or after October 19, 2026 may qualify for priority under Section 503(b)(9).
- Reclamation demands for goods received on or after September 24, 2026 must be made by November 28, 2026.
- Goods and services after November 8, 2026 are generally administrative expenses, but payment is not guaranteed.
Stage 2: The Sale and the Claims Process
What we have seen: In sale cases, contract counterparties must watch cure notices closely, and every creditor must file against the correct debtor entity before the bar date. Errors at this stage are hard to fix later.
For Children’s Place vendors now: Watch for cure notices if you have an ongoing contract, and be ready to file a proof of claim once the bar date is set.
Stage 3: The Preference Lawsuits
What we have seen: Retail cases often end with a wave of preference lawsuits. In Forever 21, which filed in March 2025, demand letters went out in January 2026 and lawsuits followed in October 2026. Vendors that had preserved payment histories, shipping records and correspondence were in the best position to reduce their exposure.
For Children’s Place vendors now: Payments received between August 10 and November 8, 2026 could be challenged. Preserve at least two years of payment history, invoices, bills of lading and emails now.
Our Experience in Retail Bankruptcies
We have represented landlords, vendors, overseas apparel manufacturers, trucking and logistics companies and personal injury claimants in other large retail cases, including Forever 21, Rite Aid, Bed Bath & Beyond, Liberated Brands (Billabong and Volcom), 99 Cents Only Stores and American Signature (Value City Furniture).
For these clients, we have pursued post-petition rent, challenged cure amounts and claim objections, sought relief from the automatic stay, worked to reinstate expunged and late claims, and defended preference lawsuits.
Prior results do not guarantee a similar outcome. Every case depends on its own facts.
Who We Help in The Children’s Place Case
Apparel and footwear manufacturers, importers and wholesalers; trim, label and packaging suppliers; trucking, freight, customs and warehouse providers; and marketing, technology and service vendors. We appear in both the New Jersey and Delaware bankruptcy courts.
Why Creditors Choose Our Firm
- Retail bankruptcy experience. Vendors, landlords, carriers and other creditors in retail cases including Rite Aid, Bed Bath & Beyond, Forever 21 and Liberated Brands.
- Preference defense results. Many of our clients have resolved preference claims for a small fraction of the amount demanded.
- New Jersey and Delaware. Offices in Cherry Hill and Wilmington, and admission in both bankruptcy courts.
- More than 15 years in bankruptcy law. Board Certified in Consumer Bankruptcy Law by the American Board of Certification and a multiple-time New Jersey Super Lawyers Rising Star.
What Happens When You Call
- Tell us what you are owed and what you shipped or provided, with dates, or send your account statement.
- We identify your deadlines and priorities, including 503(b)(9), reclamation, liens and post-petition terms.
- We give you a clear plan before you commit to anything.
The consultation is free and there is no obligation. Call (302) 214-0777.
Frequently Asked Questions
What happened to vendors in the Rite Aid and Bed Bath & Beyond bankruptcies?
In both, vendors that had been paid before the filing were later sued to recover those payments. Our firm defended many of those vendors, and in Bed Bath & Beyond one vendor sued for just over $1 million settled for $5,000.
How long after a retail bankruptcy do preference lawsuits come?
It varies. In Forever 21, lawsuits came about 19 months after the filing. Preference claims generally must be filed within two years after the bankruptcy filing.
Is The Children’s Place case in Delaware?
No. It is pending in the U.S. Bankruptcy Court for the District of New Jersey. Our firm practices in both New Jersey and Delaware.
What should Children’s Place vendors keep now?
Payment history, invoices, purchase orders, bills of lading, delivery receipts and correspondence, going back at least two years.
Speak With a Retail Bankruptcy Attorney
Call (302) 214-0777 for a free consultation. Our offices are in Wilmington, Delaware and Cherry Hill, New Jersey. Read our guide to Children’s Place preference lawsuits.
Delaware Bankruptcy Attorney is a trade name of Kasen Law Group, P.C. This article provides general information about The Children’s Place, Inc. Chapter 11 case as of November 10, 2026. It is not legal advice. Prior results do not guarantee a similar outcome. Attorney Advertising.