Claire's filed for Chapter 11 bankruptcy on August 6 with $690 million in debt and quickly identified a buyer. The company plans to sell its North America business and intellectual property to private equity firm Ames Watson, subject to approval by U.S. and Canadian courts. The sale price has not been disclosed, but the company said the sale will "significantly benefit" its effort to create value during restructuring. Liquidation at many stores has been paused, potentially preserving up to 950 North American stores, while some locations will still close or liquidate.
"Finding a buyer has been a critical goal for Claire's. At the time of filing, Claire's CEO Chris Cramer said the company was in "active discussions with potential strategic and financial partners" to find alternatives to shutting down stores. Claire's had claimed its North American stores would stay open during bankruptcy proceedings, but named 18 locations across the country that would likely close soon. It said another 1,236 stores could close by October 31 if the company didn't find a buyer in time."
"We are pleased to have the opportunity to partner with Claire's and support the next chapter for this iconic brand," Ames Watson CEO Lawrence Berger said in a statement. "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."
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