Thanks to a new deal, Claire’s has hit pause on the liquidation of a “significant” number of its stores in North America.
The tween accessories chain has signed an agreement to sell most of its business in the region, as well as the brand, to Ames Watson for US$104 million, according to a court document filed yesterday. Ames Watson is a private equity firm based in Maryland that has previously invested in brands such as Lids, Unrivaled Teamwear and Mitchell & Ness.
The transaction, which will need court approval in the US and Canada, should help keep a minimum of 795 Claire’s stores in business, but this could potentially extend to as many as 950 locations.
Claire’s filed for Chapter 11 bankruptcy protection in the US earlier this month and noted at the time that nearly 800 storefronts would be on the chopping block if a buyer wasn’t found. CEO Chris Cramer blamed factors like tariff costs and heightened competition from online stores for the company’s struggles.
Claire’s has also faced trouble in the UK—it went into administration last week after working with restructuring advisor Interpath since July to help mitigate outstanding debts of US$478.5 million.
Ames Watson is bullish about the possibility of turning the business around. “Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity and accessible fashion,” said co-founder Lawrence Berger in a statement.
“We are committed to investing in its future by preserving a significant retail footprint across North America, working closely with the Claire’s team to ensure a seamless transition, and creating a renewed path to growth based on our deep experience working with consumer brands.”
Some of the licensed brands Claire’s has partnered with over the years include Barbie, Hello Kitty, Pokémon, Disney Princesses and Squishmallows.
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