Now, this is right after we moved here and I had just bought hangers (not used them) and we were gifted with a ton of school uniforms and I had no idea what fit which kid. Since then I had hung up all the shirts and purged, sorted and purged again. Also, all their books and toys were tossed in there until the bookcase transformation took place.
It still wasn’t working. I had their shorts folded on the lower shelf on the left. They ended up on the floor every single day. So I spent my time re-folding and re-stacking.
Now, what I am going to show you is not perfect. We plan on gutting the closet after Christmas so this is a short term sanity saver. However, depending on the number of kids in one closet, this is a budget friendly option.
I popped out the bottom shelf on the left so that the hanging bar would be usable.
Then I purchased the hanging sorters for $6.80 each at Wal-Mart. I purchased three large ones (one for each boy) and one shoe one for Princess Fiona.
The boys keep their stinky shoes in the garage, but I keep her shoes in the closet since she requires a little more matching 
The large silver bins at the top hold swimsuits and sports uniforms.
There isn’t a dresser in their room and I plan on having drawers when we do the build out. Until then, they have mesh pockets on the side of their hanging things and bins on the back shelf.
Now, I generally do not like these as a permanent solution. Eventually, the weight of the items will cause the studs holding the loop to the unit to tear. However, knowing that this is a short term solution that cost me less than $50 (4 storage stacks, one pop up hamper, silver bins were free, and the cubbies – which I actually purchased for their bookcase makeover) it works for me!
Much improved {sigh}.
This is something I've been pondering as well as our current closet situation is kind of a mess. The older two share a room and a closet and the toddler has her own room/closet that she shares with DH's office/studio. Part of the problem is that I'm a kids clothes-aholic.
This weekend will be a major purge of their room. We can't go into another holiday season with the lack of storage and organization the way it is!
One other sort of off topic… I can never comment on your posts from my work computer, but have no problem from home. Is it b/c work blocks any personal email sites so blogger doesn't recognize my google ID? Just wondering
IT LOOKS FAB. fun color, and all organized. Great job. P.S. love your blog header too. WINKS, jen