Bankrupt Claire’s sells most of its North American business

Claire’s announced Wednesday it is selling most of its North American business to private equity firm Ames Watson, just weeks after the jewelry retailer declared bankruptcy.

The companies did not disclose any financial details of the deal.

Claire’s said the move comes as the tween retailer is examining every option to “maximize the value of its business.” It also said it will pause the liquidation process at most of its stores as part of the deal, which Claire’s said will “significantly benefit” the company.

Claire’s said the liquidation process will continue at some of its North American stores.

“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,” CEO Chris Cramer said in a statement. “We are glad to reach this definitive agreement to sell a portion of our North America operations to Ames Watson and maximize the value of our company for all our stakeholders.”

Ames Watson is a private holding company with more than $2 billion in revenue, focused on purchasing and transforming companies, according to its website. Its portfolio includes Lids, Champion Teamwear and South Moon Under.

“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 based on our deep experience working with consumer brands,” Ames Watson’s co-founder Lawrence Berger said in a statement.

The retailer filed for bankruptcy protection earlier this month, weighed down by nearly $500 million in debt and an increasingly competitive sales environment. The company is also expected to bear the brunt of tariff impacts on suppliers from countries such as China and Vietnam.

Claire’s last filed for bankruptcy protection in 2018, also due to a staggering debt load. At the time, the company underwent a strategic restructuring and raised new capital, which allowed it to eliminate nearly $2 billion in debt and keep stores running.