The kid-friendly accessories retailer, which declared bankruptcy earlier this month, announced Wednesday (Aug. 20) that it had struck an agreement to sell stores and its intellectual property to an affiliate of private equity outfit Ames Watson.
Under this agreement, Claire’s says it has halted liquidation at a “significant number” of its stores, though that process will continue at other locations in North America.
“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion,” Lawrence Berger, co-founder of Ames Watson, said in a news release.
“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,” Berger added.
Claire’s, a long-time staple of America’s malls, announced Aug. 6 that it was seeking Chapter 11 bankruptcy protection, following an earlier bankruptcy filing in 2018, which resulted in the closure of several dozen stores.
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“This decision is difficult, but a necessary one,” Claire’s CEO Chris Cramer said in a news release. “Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire’s and its stakeholders.”
Cramer added the company was “in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”
As PYMNTS noted at the time, the company’s announcement did not mention tariffs, though Claire’s, like many retailers, relies on sourcing products from countries like China, which are subject to steep levies imposed by the White House.
Claire’s has a $496 million loan due in December 2026, CNN reported earlier this month, while a separate report from Bloomberg News noted that the company had ceased paying rent on some stores in June and July.
The bankruptcy is “no surprise,” said Neil Saunders, managing director of GlobalData, said in a report by CNN, adding that Claire’s has been suffering with a “cocktail of problems, both internal and external, that made it impossible to stay afloat.”
