Children's Place Retail Stores Inc. (NDAQ:PLCE) announced that they have hired Lehman to explore strategic alternatives, according to a press release put out by the company. The move comes after the company lost more than half of its value amid accounting problems and falling same-store sales. Shareholders are hoping that this review will result in a transaction that will jump the shares.

"The Board of Directors and management team are focused on strengthening the organization and positioning the Company to take advantage of long-term growth opportunities through its Children's Place and Disney Store brands," said chief executive Chuck Crovitz in a statement. "We believe it is in the best interest of the company, our shareholders, and employees to initiate a comprehensive review of strategic alternatives."

Children's Place disclosed last August that its quarterly losses nearly doubled and that its full year profits would fall far below analyst estimates, which led to shares plunging more than 50 percent. Now the company has no long-term debt and is expected to end the year with at least $160 million in cash with a market cap of around $682 million.

In the end, it is likely that the company will at least institute a share buyback or special dividend to rid itself of this spare cash while also perhaps taking on some debt or selling some stores. Many shareholders, however, are hoping that the company will take another route and sell itself entirely, which could easily result in a substantial windfall for shareholders and investors. Either way, PLCE is definitely a stock worth watching!

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