Management Turnover as Change Agent

Monday, May 12, 2008

Former CEO Children's Place Has Finally Got the Attention of The Firm

Ezra Dabah the former CEO of troubled children's retailer, A Children's Place PLCE (NASDAQ), and its largest shareholder appears to have finally gotten the attention of the public company.  I have been following Dabah's attempts for some time in the blog.  After continuing efforts to get the company to consider Dabah as a possible acquirer of the firm after his initial ouster back in September 2007, the board has finally responded to his requests.  In an Associated Press story by Amanda Fehd in the Atlanta Journal Constitution Fehd wrote,
The board of Children's Place Retail Stores Inc. said Friday it has approved a request from its former chief executive Ezra Dabah to work on a proposal to acquire the company with a private equity firm.

Dabah had asked the board's permission to bypass shareholder acquisition laws that could otherwise preclude Golden Gate Private Equity Inc.'s participation in an offer.
Children's Place continues to struggle in the midst of a difficult retailer environment and a decline in the company's cache as a moderate priced but high styled children's clothing store. Keep a close eye on how this all plays out.

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