Children’s Place Soars After Mithaq Capital Builds 54% Stake

Struggling apparel retailer The Children’s Place Inc. saw its shares more than double Thursday after saying Mithaq Capitalbought more than half the company’s outstanding stock and asked to enter financing talks.

Mithaq — a Saudi family investment firm with ties to the world’s biggest Islamic bank — told The Children’s Place it now owns 54% of its outstanding shares and intends to nominate 11 people to the retailer’s board, according to a Thursday statement. Mithaq also asked to kick off talks about helping with the company’s cash needs.

The stocked soared as much as as 162%, a record ...