Children’s Place kids clothing retailer has agreed to pay $12 million to settle a class-action lawsuit against the company. Reuters reports that the lawsuit accused “its officers of misrepresenting facts about operations that caused the company’s stock to artificially inflate.”

Though the company has agreed to pay the $12 million, it denies that it has committed any wrongdoing. Reuters reports:

The company said it denied all allegations made in the suit and decided to settle the suit to eliminate further litigation and related expenses.

The children’s clothing retailer said the cost of the settlement would be covered by insurance.

Wow, good thing they had that lawsuit insurance. I wish I had some kind of insurance to pay off all my personal loans.

More drama at Children’s Place

Apparently business at Children’s Place has been shaky for quite some time. The Wall Street Journal reports:

Since taking the reins of Children’s Place in 2007, Mr. Crovitz has been aggressively cutting costs to maintain profitability in a difficult retail environment. Selling, general and administrative expenses fell to 29% of sales in fiscal 2008 from 32% in fiscal 2007. For its most recent quarter, the retailer posted a profit of $23.5 million, up from $19.5 million a year earlier. The company’s shares have risen 17% since Mr. Dabah resigned in September 2007.

The WSJ also reports that Dabah resigned at the request of the previous board because he failed to report an increase in his wife’s stock.

Battle on the board

The Wall Street Journal on June 19 reported the details of the struggle going on between Dabah and Crovitz:

In the six-page letter, accompanied by a gold proxy card, Mr. Dabah criticized the current directors for the company’s recent sales performance, said he was concerned about the company’s failure to plan for the future and pointed to “the promising children’s footwear concept, which has largely been abandoned.” Mr. Dabah … has nominated three executives for positions on the board of the Secaucus, N.J., children’s apparel seller.

In an interview, Mr. Dabah said, “A company cannot be successful — especially a company like ours — just on cost cutting. We need vision, we need growth initiatives, we need to constantly be thinking about what’s next. And we have not seen the company articulate that.”

The company’s annual meeting was scheduled for July 31, but that date is a bit shaky now that the lawsuit settlement has been announced.

Get to know the Children’s Place

The Children’s Place has been a publicly traded company since 2007. However, the retailer has been selling children’s clothing since several years before that. The company also owned some Disney stores from 2004 to 2007. On March 26, 2008, Hoop Holdings/Hoop Retail Stores LLC and related subsidiaries of TCP that operated Children’s Place and Disney Store retail locations filed a voluntarily petition for relief under Chapter 11 Bankruptcy.

The Children’s Place stores are usually located in regional malls. The stores sell clothing for newborns through preteens, as well as accessories and a limited selection of toys and games. It doesn’t appear the lawsuit settlement will affect daily store operations.

Some of the clothes on Handmedowns.com have price tags still attached.

They may not be free, but the used baby clothes at Handmedowns.com sure are cheap. And, unlike most online retailers, you might not need to pay for shipping.

Handmedowns.com categorizes offerings by city, so you could potentially arrange to meet the seller.

Helping parents from Seattle to Miami

Handmedowns.com offers help for cash-strapped parents on both ends of the deal and all corners of the country. Parents who need a little extra cash and have gently used children’s items can sell them and maybe avoid needing payday loans to help out with extra costs.

Moms and dads who don’t want to pay retail prices for items their pride and joy will outgrow in .04 seconds can pick up shoes, clothes, car seats, strollers and plenty of other necessities.

Easy to use

Handmedowns.com has big, colorful icons at the top, where you can choose whether you want to “buy goods and services,” “sell your stuff,” “give away for free” or “donate to charity.”

Of course, that “give” button means that you could also find free items on Handmedowns.com. However, in most of the cities I checked there weren’t any free items listed.

More than just clothes

For each city, goods are separated into nine categories. You can find books, music, toys, furniture and other gear. There are also categories for classes/services and childcare.

The site specifies that any offerings posted must be gently used: “no rips, stains, broken parts, missing pieces, ect.” The site also professes to be eco-friendly and request that users don’t try to sell products that have been recalled.

Mom police

The site also has a system for keeping unwanted users off of Handmedowns.com called the “Mom police.” Once you become a registered user, you can flag any “listing that appears unsafe or inappropriate.”

Something for everyone

Handmedowns.com will mostly benefit families looking to save or make a little extra cash. However, there’s a promo up right now for “Nicole Richie Charity Auction.” Bidders have nine more days to vie for clothing Richie’s daughter has worn.