Claire’s Finds Buyer, Could Save up to 950 Stores

The retailer, which recently filed Chapter 11, inked a deal to sell its North American business and intellectual property.

Lenore Fedow lenore.fedow@nationaljeweler.com

Mall staple Claire’s has found a buyer for its North American business, allowing it to save up to nearly 1,000 stores in the U.S. and Canada from closure.

Hoffman Estates, Ill.—Claire’s has entered into an agreement to sell its business operations and intellectual property in North America, the company announced Wednesday, a deal that will allow the retailer to preserve a portion of its store network.

The buyer is an affiliate of Ames Watson, a Maryland-based private equity firm that has invested in WatchBox, Lids, Champion, and Fanatics.

The mall staple filed for Chapter 11 bankruptcy protection a second time earlier this month, filing in both the United States and Canada, and was looking for a buyer for some or all of its assets.

The sale of its North American business and IP was valued at $104 million in cash plus a $36 million seller note (both subject to adjustments), as per court documents.

“Importantly, the sale transaction will preserve thousands of jobs, provide continued business to many of the debtors’ vendors and landlords, and will allow the Claire’s brand to remain a prominent retailer for teens, tweens, and young girls around the world,” said the filing.

Claire’s has been struggling in the face of declining mall traffic, increased competition, and the challenge of appealing to a new generation of shoppers.

After filing, the retailer initially announced the planned closure of 18 stores in the U.S., but that number quickly grew.

On Aug. 6, Claire’s CEO Chris Cramer stated in court documents that the company could close as many as 700 locations, including all 190 Icing stores and 210 shop-in-shops in Walmart, and would continue to look for a buyer for its remaining 800 stores.

In the following days, with the prospect of a buyer uncertain, the retailer began the liquidation process across all of its more than 1,500 stores in North America.

However, with this new agreement now in place, Claire’s said as of Aug. 16, it has paused the liquidation process at about 950 locations.

According to court documents, Ames Watson will acquire at least 795 Claire’s stores and could keep as many as 950.

For the remaining 550 stores in North America, the liquidation process will continue.

Based in the Chicago suburb of Hoffman Estates, Illinois, Claire’s operates more than 2,750 stores in 17 countries across North America and Europe, as well as Icing fashion jewelry and accessories stores, as per its website.

Longtime fans of Claire’s took to TikTok and other social media channels to express their sadness at the impending closure of such a nostalgic brand.

A few Claire’s employees also shared their experiences working in the perhaps soon-to-close stores. One TikTok user, who appears to be a Claire’s employee, recently had some good news to share, stating that she was told to take the store closing signs down and get back to business as usual.

  @sariah2sexy what is going on 😖 #claires ♬ LOOK AT THIS - Astro Boyke

The Claire’s team had “worked tirelessly” to explore all the available options, Cramer said in a statement released Wednesday.

“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. I would again like to extend my gratitude to every Claire’s employee who has continued to show up for our customers during this challenging time for our business,” he added.

Ames Watson co-founder Lawrence Berger said the company is ready to support the next chapter for Claire’s.

“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion,” he said.

“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.”