The Walt Disney Co. said on Thursday it has taken ownership of 220 Disney Store chains from a subsidiary of The Children's Place Retail Stores Inc. and will close stores within North America.
Disney reclaimed most of the money-losing operation after the Children's Place subsidiary that operated the Disney Store chains filed for Chapter 11 bankruptcy protection in March. The Children's Place was not included in the bankruptcy filing.
Terms of the purchase were not disclosed.
Disney said the final number of stores will depend on negotiations with landlords. Disney also acquired the right to close about 98 stores in the United States and two in Canada.
Analysts said that Disney's reclamation of just two-thirds of the stores and the elimination of license fees paid to Disney will boost profits from the outlets.