Claire's to Sell North America Business Amid Bankruptcy Restructuring

Claire's is selling its North America business to Ames Watson to reduce losses amid bankruptcy proceedings. The retailer, with over 2,300 stores, filed for bankruptcy, citing $690 million in debt. The sale requires court approval, and liquidation continues for unsold stores.

Fashion jewelry retailer Claire's announced on Wednesday that it is selling its North America business to private equity firm Ames Watson. The move comes as Claire's seeks to cut losses amidst its ongoing bankruptcy proceedings in the U.S. The retailer operates over 2,300 stores across 17 countries in North America and Europe.

Earlier this month, Claire's disclosed $690 million in debt in its bankruptcy court filings in Delaware, marking its second filing for bankruptcy protection since 2018. The sale, which includes Claire's intellectual property and stores, requires approval from U.S. and Canadian courts.

Ames Watson, a permanent capital holding company, generates over $2 billion in revenue and is known for acquiring and transforming middle-market companies. Amid challenges such as increased competition and high rent costs, Claire's will continue liquidation for stores not included in the sale, according to CEO Chris Cramer.

(With inputs from agencies.)