Key Points:
- Claire’s is selling its North American business to Ames Watson for $104 million amid bankruptcy.
- The deal includes nearly 800 stores and aims to preserve jobs and retail operations.
- Despite the acquisition, many stores will still close, shrinking Claire’s overall footprint.
Accessory retailer Claire’s has reached an agreement to sell its North American business to private equity firm Ames Watson as part of its Chapter 11 bankruptcy process. The deal, worth about $104 million in cash, will allow the company to transfer ownership of its brand and hundreds of stores to new hands, ensuring that a significant portion of its retail network remains open.
The agreement covers nearly 800 stores, with the potential to extend to more than 950. Ames Watson, best known for reviving brands such as Lids and Champion Teamwear, will also assume certain financial obligations, including vendor and landlord payments. As part of the arrangement, current retail employees are expected to keep their positions, while Claire’s will benefit from a $36 million credit facility to ease its debt burden. The sale, however, requires approval from U.S. and Canadian bankruptcy courts before being finalized.
Debt Pressures and Retail Challenges
Claire’s, a staple of mall culture known for affordable jewelry and its signature ear-piercing service, filed for bankruptcy earlier this month—the second time in seven years. The company has been weighed down by nearly $700 million in debt, mounting competition from online retailers, and falling foot traffic in shopping malls. Added costs from tariffs on imports further strained its business model.
Prior to the acquisition deal, Claire’s had announced plans to shutter hundreds of U.S. stores, including those under its Icing brand. Liquidation sales had already begun in several locations, raising concerns about the future of a chain that once boasted thousands of outlets worldwide. Though Claire’s had previously emerged from bankruptcy in 2018 after reducing debt, it was unable to sustain momentum against renewed economic and retail pressures.
Future Outlook
The agreement with Ames Watson offers a path forward for Claire’s by halting closures at stores included in the sale and providing stability under new ownership. For Ames Watson, the acquisition represents both a challenge and an opportunity: preserving a nostalgic retail icon while adapting it to today’s shifting consumer habits.
Still, many stores outside the scope of the deal remain on course for liquidation, meaning Claire’s footprint in North America is likely to shrink significantly. With its future hinging on the success of this acquisition, the brand stands at a critical juncture—striving to retain its cultural relevance for a new generation of shoppers while navigating the realities of a retail landscape dominated by e-commerce and evolving consumer preferences.
