The event of default triggered by a change of control due to Mithaq's actions puts Children's Place in a precarious financial position. This situation could lead to increased volatility in PLCE's stock price as investors react to the potential risks associated with the company's ability to renegotiate terms with lenders or face stricter financial constraints. The immediate impact is likely negative due to uncertainty and potential repercussions on the company's creditworthiness and operational flexibility.