Tween accessory store Claire’s has found a buyer after filing for bankruptcy earlier this month.
When the company filed for bankruptcy for the second time in seven years, it operated about 2,750 stores in North America and Europe, including around 190 stores under its Icing brand in North America.
Last week, Claire’s announced it entered into an agreement with an affiliate of Ames Watson, a private holding company.
The buyer agreed to purchase no less than 795, and potentially as many as 950, North American Claire’s stores, including the inventory within the stores, according to court documents.
Claire’s will get $104 million in cash and a $36 million Seller Note, a form of financing, in the deal.
The buyer has also committed to keeping almost all employees at the stores it has acquired and a “significant number” of staffers at Claire’s Illinois headquarters.
“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion,” Ames Watson Co-Founder Lawrence Berger said 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.”
Despite the deal, Claire’s still has to shutter hundreds of stores. USA TODAY reported the company listed more than 290 stores expected to close in a court filing on Monday.
Many may remember shopping for jewelry and hair accessories at a Claire’s store in their local mall as a tween or teenager. Some may have even got their first set of earrings at the store’s ear-piercing station.
But, as younger shoppers shifted their attention to ultra-low-cost online retailers, including Shein and TikTok Shop, Claire’s struggled to compete.
Now that Claire’s has reached a deal with the Ames Watson affiliate the company has paused the liquidation process at a “significant number” of stores.
But the agreement still has to be approved by the courts in the U.S. and Canada.
“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,” Claire’s CEO Chris Cramer said 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.”
