Jewelry retailer Claire’s said Wednesday it would promote its North American business to non-public equity firm Ames Watson for $104 million in money, in a deal that will keep at least 795 retail places in business.
The sale settlement will “allow the Claire’s brand to remain a prominent retailer for teens, tweens, and young girls around the world,” Claire’s said in a court doc filed on Wednesday.
Ames Watson, a non-public holding company that owns athletic attire manufacturers including Champion Teamwear and Lids, is buying Claire’s model and up to 950 Claire’s shops, according to court paperwork.
Ames Watson, a non-public holding company that owns athletic attire manufacturers including Champion Teamwear and Lids, is buying Claire’s model and up to 950 Claire’s shops, according to court paperwork. JHVEPhoto – stock.adobe.com
Claire’s has halted “going out of business sales” at all shops that could be bought, but it will proceed liquidation gross sales at other places.
Claire’s, which sells earrings and fashion equipment for teenagers and younger women, filed for chapter in Delaware earlier this month with more than $690 million in debt. The company, which beforehand filed for chapter in 2018, operates more than 2,300 shops across 17 nations in North America and Europe.
Ames Watson co-founder Lawrence Berger said in a assertion that the firm was “committed to investing in its (Claire’s) future by preserving a significant retail footprint across North America.”
Ames Watson will also present noncash concerns as half of the sale, such as taking on liabilities owed to Claire’s distributors and landlords, persevering with to make use of present retail employees at acquired Claire’s shops, and extending $36 million in credit that the bankrupt company can use to deal with some of its pre-existing debt.
Claire’s will search approval of the sale on Thursday at a court listening to in Wilmington, Del.
Claire’s, which sells earrings and fashion equipment for teenagers and younger women, filed for chapter in Delaware earlier this month with more than $690 million in debt. Getty Images
Claire’s has suffered in current years from elevated competitors, high rent prices, and new tariffs on imports from provider nations such as China, Thailand and Vietnam.