Just weeks after filing for Chapter 11 bankruptcy for the second time, as we reported earlier this month, Claire’s has found a potential savior. The mall staple known for ear piercings and glittery tween accessories is getting a lifeline from private holding firm Ames Watson, which has agreed to acquire its North American business operations.
The deal has already halted liquidation at many locations and gives the retailer a shot at stability after years of financial strain.
Following the August 6 bankruptcy filing, Claire’s began winding down operations at some locations, especially underperforming suburban mall stores. Court records showed over $14.7 million owed to just the top four creditors. Thirteen Claire’s and five Icing stores were marked for permanent closure.
But with Ames Watson stepping in, most of those closures are now paused.
“As we continue through our restructuring proceedings, our team has worked tirelessly to explore every option for preserving the value of the Claire’s business and brand,” said CEO Chris Cramer. “We are glad to reach this definitive agreement.”
Liquidation will still proceed at select locations, but most stores will stay open (for now)
The Maryland-based holding company has revived several legacy brands before, including Lids, Mitchell & Ness, and South Moon Under. Its portfolio generates more than $2 billion annually.
For Claire’s, which also filed for bankruptcy back in 2018, this experience could prove crucial. That earlier restructuring trimmed debt and pushed the brand toward digital and international markets, but shifting mall traffic and rising costs kept pressure high.
The brand has promised more updates via its restructuring website, but the path forward is clearer than it was just weeks ago: fewer closures, continued operations, and a new parent company with retail muscle.
Still, survival will depend on more than nostalgia. The next generation of teens isn’t browsing stores in person — they’re scrolling TikTok. Whether Claire’s can pivot fast enough to stay relevant in 2025 remains the bigger test.
Source: Bizjournals