Childrens Place, Inc. 10-K

ITEM 2. PROPERTIES. We lease all of our existing store locations in the United States, Puerto Rico, and Canada, with lease terms expiring through 2032. The average unexpired lease term for our stores is approximately 1.8 years in the United States, Puerto Rico, and Canada. Generally, we enter into initial lease terms ranging between 1 - 10 years at inception and provide for contingent rent based on sales in excess of specific minimums. We anticipate that we will be able to extend those leases which we wish to extend on satisfactory terms as they expire or relocate to more desirable locations. The following table sets forth information with respect to certain of our non-store locations as of February 3, 2024: Location Use Approximate Sq. Footage Current Lease Term Expiration Fort Payne, AL (1) Store Distribution Center / E-commerce Fulfillment Center 700,000 Owned Ontario, Canada (2) Store Distribution Center / E-commerce Fulfillment Center 95,000 4/30/2024 Hong Kong, China (3) Product Support 11,000 4/30/2027 500 Plaza Drive, Secaucus, NJ (3)(4) Corporate Offices 120,000 5/31/2037 500 Plaza Drive, Secaucus, NJ (5) Corporate Offices 80,000 5/31/2024 ____________________________________________ (1) Supports our U.S. stores, wholesale, and e-commerce business. (2) Supports our Canadian stores and our Canadian e-commerce business. We moved these operations to the United States to our current distribution center in Alabama as of the end of the first quarter of Fiscal 2024. (3) Supports our U.S. stores, our e-commerce business, our Canadian stores, our international franchisees, and wholesale business. 29 Table of Contents (4) We signed a new lease in January 2024 under more favorable terms, which expires in May 2037, with a termination right after the seventh year, and two five-year renewal options at fair market value. (5) Supports our U.S. stores, our e-commerce business, our Canadian stores, our international franchisees, and wholesale business. The current lease expires on May 31, 2024 but will continue on a month-to-month basis until May 31, 2025, which we can terminate by providing the landlord with a 60-day notice period. We also use a third-party provider operating a 315,000 square foot distribution center in Indiana and a 184,000 square foot distribution center in Ontario, Canada to support our U.S. and Canadian e-commerce fulfillment operations, respectively.