Claire's to sell North American operations amid bankruptcy proceedings

Claire's Holdings LLC, the operator of Claire's and ICING stores in the U.S. and Gibraltar, has entered into an agreement with an affiliate of Ames Watson, a private holding company, for the acquisition of its North American business operations.

This move follows the company's decision to begin Chapter 11 bankruptcy proceedings in the U.S., as well as similar proceedings in Canada under the Companies' Creditors Arrangement Act (CCAA). The sale to Ames Watson, which also includes Claire's intellectual property, is a key part of the company's strategy to maximize value through its restructuring efforts.

Claire's to sell its North America business

Following the agreement, Claire's has halted the liquidation process at a significant number of its stores in North America, though liquidation will continue at others. The sale is contingent upon approval from courts in both the U.S. and Canada and is subject to other closing conditions.

Claire's CEO, Chris Cramer, stated that the company had "worked tirelessly to explore every option" to preserve the brand's value and that it was "glad to reach this definitive agreement". He also expressed his gratitude to employees for their continued work during this challenging time.

Ames Watson's co-founder, Lawrence Berger, said the company is committed to "investing in its future by preserving a significant retail footprint across North America". He noted that Claire's has built a "powerful emotional connection with generations of consumers" and that he looks forward to working with the team to ensure a seamless transition and a "renewed path to growth".

Claire's businesses in several countries fall into administration

The company's financial troubles extend beyond North America. Claire's UK and Claire's Netherlands have also filed a notice of intention to appoint administrators, a step taken to protect the business and its stakeholders while future options are being evaluated.

Separately, restructuring proceedings are also underway in Germany and Austria. Despite the challenges, Claire's stores in North America and the UK are expected to remain open and continue serving customers while the company navigates the restructuring process.