CEO of The Children's Place Exits

Jane Elfers, who has led The Children's Place as its CEO since 2010, announced her departure effective Monday. Elfers also served as the president and a board member. A SEC filing said the departure was a "mutual agreement with the company." Elfers will receive $3.75 million in the form of a separation payment, as well as continued health coverage for two years paid for by The Children's Place.

“I want to thank the entire team at The Children’s Place for their hard work and dedication, and I wish them the best of luck," Elfers said in a press release.

Elfers will be replaced in the interim by Muhammad Umair, a board member who joined in February. Umair was most recently a senior advisor to Origin Funding Partners, a global trade finance fund, where he was responsible for credit, recovery and due diligence. He'll be paid an initial annual base salary of $650,000 and will be eligible for annual and long-term incentive compensation as determined by the board.

Total Retail's Take: Morningstar reported that shares of The Children's Place dropped Tuesday following the announcement. The company reported a surprise increase in same-store sales on May 6 following seven quarters of decline, making the timing of this leadership change a bit surprising, especially considering Elfers long tenure at The Children's Place.

The Children's Place received a second loan from its majority shareholder, Mithaq Capital SPC, in April. At the time, Mithaq's CEO said the loans would help "put the company on a path to strong future free cash flow generation." At the time, The Children's Place also saw the exodus of five board members. During her tenure, Elfers was credited with leading The Children's Place turnaround, but following recent struggles the board decided it was time for a new leader in the CEO position.