Children's Place announces deal with Walt Disney Co
08 Jun '07
2 min read
The Children's Place Retail Stores Inc announced that it has executed a letter agreement with a subsidiary of The Walt Disney Company (Disney) to resolve assertions by Disney that the Company committed numerous material breaches of its long-term license agreement under which the Company operates the Disney Store retail chain in North America.
This letter agreement, which modifies and supplements the license agreement, represents the conclusion of several months of previously disclosed discussions that have been ongoing between the companies.
"We are pleased to have come to an understanding with The Walt Disney Company," said Ezra Dabah, Chief Executive Officer of The Children's Place Retail Stores, Inc. "We are committed to executing on this important remodel program which will contribute to our goal of elevating the guest experience."
Under the letter agreement, the Company has agreed to, among other things, remodel a total of 234 existing Disney Stores into a new store prototype being developed by the Company, by the end of fiscal 2011. The first nine remodels, which will include two stores bearing the "Mickey" format, will be completed during the second half of fiscal 2007.
The Company is required to remodel at least 67 additional Disney Stores, 33 of which will be "Mickey" stores, into the new store prototype by the end of fiscal 2008 and to remodel an additional 53, 70 and 35 Disney Stores during fiscal 2009, 2010 and 2011, respectively.
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