The Children’s Place has received a US $ 130 million loan offer to help it stay afloat. This comes after the retailer announced earlier this week that Saudi Arabia’s AlRajhi family purchased a 54 per cent stake in the company through their investment firm.
Gordon Brothers Group, a group that specialises in liquidating brick-and-mortar stores, has issued a term sheet for the loan, which is subject to due diligence and other restrictions, according to The Children’s Place. The business said it aimed to complete the arrangements next month.
The loan discussions follow Mithaq Capital, the AlRajhi family’s investment firm, acquiring majority ownership of The Children’s Place through open-market stock purchases this week, triggering a change-of-control provision in the company’s previous US $ 50 million debt package, which required it to be refinanced. The Children’s Place said that Mithaq wants to propose 11 members to the company’s board of directors.
