Claire’s has reached an agreement to sell as many as 950 of its North American stores to private equity firm Ames Watson.
The deal, which includes Claire’s intellectual property, calls for Ames Watson to buy between 795 and 950 of its stores for $104 million cash, a $36 million seller note, and assumption of certain liabilities, according to a motion filed today in federal bankruptcy court in Delaware. The agreement is subject to court approval in the United States and Canada.
As a result of this transaction, Claire’s “has paused the liquidation process at a significant number of stores,” said a company statement. In a court motion on Aug. 6, the day Claire’s filed for Chapter 11, CEO Chris Cramer had announced plans to shut approximately 700 stores in the U.S. and Canada and noted the company could close the remaining 800 if no buyer was found.
In today’s court filing, Claire’s said the Ames Watson sale “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.”
Ames Watson’s portfolio includes Champion Teamwear and Lids. The company also has a minority investment in Watchbox.
“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion,” said Ames Watson cofounder Lawrence Berger in the statement. “We are committed to investing in its future by preserving a significant retail footprint across North America.”
The Hoffman Estates, Ill.–based ear-piercing giant had previously filed for bankruptcy in 2018.
(Photo: Getty Images)
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