Child World Started in 1962 in Quincy MA The in 1970 they started opening stores that look like a mid evil castle and also called Children’s Palace and created a character called Peter Panda. In the 1980’s they were vheap and growing. Then the downfall came in 1990 when the ression hit andf then the hit trouble in December of 1991. They filed a Chapter 11 Bankruptcy. Then in August 1992 Hit Chapter 7 Liquidation. What Happened to Children’s Palace/Child World? Did The lower prices kill them or did Toys R US lead to their down fall of a bankruptcy. These stores were ultra cool and a part of any kids child hood that grew up in the 1970’s and 1980’s.