Children's Place Stock Hits 21-Year Low Amid Cash Shortage Concerns

The Children’s Place Inc.'s stock plummeted 53% to a 21-year low after issuing a profit warning for the fourth quarter and revealing it's running out of cash, prompting the company to seek new financing. The company is considering strategic alternatives if it can't secure the necessary funds and expects a fourth-quarter adjusted operating loss due to lower merchandise margins and increased inventory valuation adjustments. Monness Crespi Hardt downgraded the stock, citing execution missteps and liquidity concerns, while the company's liquidity stood at about $45 million as of Feb. 3.