Claire’s will sell its North American business operations to private holding company Ames Watson, which plans to maintain a significant retail footprint for the brand in the region. The tween favorite retailer declared Chapter 11 bankruptcy and reorganization under Canada’s Companies’ Creditors Arrangement Act (CCAA) in early August, and quickly identified 700 stores that were “not viable under current lease terms or are underperforming,” including shop-in-shops in Walmart stores.
“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity and accessible fashion,” said Lawrence Berger, Co-founder of Ames Watson 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.”
Financial terms of the purchase were not disclosed, but as part of the agreement, Claire’s has paused an ongoing liquidation process at a “significant” number of stores. The transaction must be approved by both U.S. and Canadian bankruptcy courts. Prior to the bankruptcy announcement, Claire’s operated nearly 2,000 stores around the world, with 190 under the Icing banner.
“As we continue through our restructuring proceedings, our team has worked tirelessly to explore every option for preserving the value of the Claire’s business and brand,” said Chris Cramer, CEO of Claire’s in a statement. “We are glad to reach this definitive agreement to sell a portion of our North America operations to Ames Watson and maximize the value of our company for all our stakeholders.”
Advertisement
