The Children's Place, Inc. (NASDAQ: PLCE) entered into a $15.0 million term loan with its controlling shareholder, Mithaq Capital SPC ("Mithaq"), on July 1, 2026, according to a company statement.

The loan, structured as a Shariah-compliant, unsecured and subordinated promissory note, represents the first advance under a $40.0 million commitment letter between the two parties originally dated May 2, 2024. Following receipt of the funds, the company's remaining availability under the facility was permanently reduced to $25.0 million.

The term loan matures on April 16, 2031, and carries an interest rate equal to the Secured Overnight Financing Rate for a one-month interest period plus 9.00% per annum. Interest payments are due monthly in cash but may be deferred by the company upon written notice to Mithaq. The loan may be prepaid at any time without penalty and carries no mandatory prepayment requirements.

The company said it intends to use the proceeds to prepay amounts outstanding under its revolving credit facility with Wells Fargo, reduce accounts payable balances with vendors, and for general corporate purposes. The loan is subordinated in payment priority to the company's existing $350.0 million revolving credit facility with Wells Fargo and its $100.0 million term loan with SLR Credit Solutions.

Because Mithaq is a controlling shareholder, the transaction was classified as a related-party transaction. Turki Saleh A. AlRajhi, the company's Executive Chairman, serves as Chairman and Chief Executive Officer of Mithaq Holding Company. Muhammad Asif Seemab, who serves as President and Interim Chief Executive Officer of the company, is a Managing Director of Mithaq Holding Company. The transaction was reviewed and approved in accordance with the company's related-person transaction policies.