Dabah is considering teaming up with outside sources to make a buyout offer for the struggling children's apparel retailer, according to a Securities and Exchange Commission filing Monday.
In the filing, Dabah disclosed a 17.9% stake in Children's Place and said he has hired Bear Stearns to act as a financial adviser. Dabah plans to contact potential private-equity sponsors and other buyers as part of the efforts, the filing said.
Dabah also may recommend support for a third-party acquisition, depending on Bear Stearns' findings in its review.
Dabah was forced out as Children's Place's CEO late last month after an internal investigation found that he hadn't complied with company policies over stock trades. He still serves as a director.
The New York Times
, Dabah has since written an angry letter to the board calling his ouster a "power play" by certain directors and hinting at a conspiracy.
The tumult comes as Children's Place is struggling with weak sales and lower-than-expected profits. Last week, shares slid after the company
cut its fiscal-year outlook for the second time in two months.
Shares of Children's Place recently were up $1.08, or 4.5%, to $25.