Claire’s strikes $140M private equity buyout, halts closures
Claire’s has hit pause on its planned wave of store closures following an acquisition deal announced Wednesday that could reshape the future of the accessories retailer.
The company, which filed for bankruptcy earlier this month, had been preparing to shutter 700 stores and was weighing liquidation of its entire 1,500-store North American fleet. Instead, Claire’s now has a path forward after an affiliate of private equity firm Ames Watson agreed to purchase its North American operations.
According to court documents, Ames Watson will acquire Claire’s for $104 million in cash plus a $36 million seller note. The firm will also assume certain liabilities, including rent, wages for many employees, and cure costs.
A Lifeline for Claire’s
The deal comes as a surprise after Claire’s months-long struggle to secure a buyer. Despite broad outreach that included contacting 160 potential investors and executing more than 60 non-disclosure agreements, the retailer appeared on the brink of collapse.
“The Debtors left no stone unturned in their sale and marketing process,” Claire’s told the court, emphasizing that multiple letters of intent were pursued before finalizing the agreement. The company urged approval, calling the outcome a success given the circumstances.
Just weeks ago, Claire’s had announced plans to close all of its Walmart shop-in-shops and Icing locations, while warning that its entire U.S. and Canadian footprint might shut down. Under Ames Watson’s agreement, between 795 and 950 stores will remain open, preserving jobs for nearly all store employees as well as many corporate staff.
Ames Watson Steps In
The sale, which includes Claire’s intellectual property, still requires approval by courts in both the U.S. and Canada, along with customary closing conditions. Notably, the deal includes a “fiduciary out” clause, meaning Claire’s could accept a superior bid if one emerges.
Ames Watson, whose portfolio includes investments in Lids, Champion, South Moon Under, and Fanatics, has a track record with consumer brands. Co-founder Lawrence Berger described Claire’s as an “iconic brand” with deep ties to generations of shoppers.
“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion,” Berger 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.”
What’s Next
If finalized, the deal would allow Claire’s to fully pay down its asset-based loan and secure stability for hundreds of stores that were at risk of closure. For the tween-focused retailer, which previously filed for Chapter 11 in 2018, the acquisition offers another chance to reset operations and refocus on growth under new ownership.
The development marks a major turnaround from the retailer’s recent warnings of liquidation, offering hope to employees, landlords, and loyal customers who feared losing the brand entirely.
