A BUYOUT offer worth $140 million promises to save a mall staple from 700 store closures.
An offer from the private equity firm Ames Watson could save 409 Claire’s stores, which would take the store closure count down to 291.
Claire’s has finally received a buyout offer[/caption]
Court documents revealed that Ames Watson has agreed to acquire at least 795 Claire’s stores in North America.
This total which could increase to 950 stores.
Ames Watson would take on a set amount of Claire’s liabilities, and as well as pay wages for a significant number of Claire’s staff, according to a statement reported by Retail Dive.
On top of this, the court documents show that nearly all store employees plus many at the retailer’s headquarters would keep their jobs.
Ames Watson co-founder Lawrence Berger said in a statement that the equity firm is determined to preserve Claire’s “iconic” brand in the US.
He commented: “Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion.
“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 has also invested in or owns Lids, Champion, South Moon Under and Fanatics.
The deal to buy Claire’s is still awaiting court approval in both the US and Canada.
DARK TIMES
Prior to the Ames Watson offer, Claire’s considered full liquidation in North America.
This would have seen the shutdown of 1,500 stores across the country.
The accessories retailer struggled for months to find a buyer, and reached out to 160 potential financial and strategic firms for help, per court documents.
When Claire’s announced the bankruptcy last month, and the planned 700 closures, it was not thought that the company would find a way out.
The 700 closures included all of its location inside Walmarts and all of its Icing stores, another brand owned by the company.
BRANDS HARD HIT BY BANKRUPTCIES
Many chains have struggled to adapt to a post-Covid retail landscape, with several companies filing for bankruptcy
JoAnn Fabrics and Crafts announced it would close all 800 stores after filing for bankruptcy twice in a year.
Hooters announced plans to file for Chapter 11 bankruptcy protection in February.
Liberated Brands announced that it would be closing all 122 retail locations for its boardsport fashion brands Quiksilver, Billabong, and Volcom.
Forever 21 shut down its headquarters after filing for bankruptcy and laying off 358 employees.
Macy’s announced major restructuring plans amid mass store closures.
Even experts expressed doubt that a buyer would be found.
In emailed comments, Sarah Foss, global head of bankruptcy at Debtwire claimed that Claire’s was not flexible enough to find a suitable bidder
She said: “Although Claire’s retains flexibility to halt the store closing sales if a buyer emerges to purchase the company’s assets on a going-concern basis, it is unlikely that such a bidder will emerge.
“Indeed, the company has said that an actionable going-concern sale has not materialized for the 800 stores as of the bankruptcy filing.”
But Claire’s had expanded in recent years, and sought out big name brands to partner with.
Claire’s had formed a strong partnership with Macy’s in 2022, which brought mini stores to 21 Macy’s locations.
This created opportunities for teenagers and children to Claire’s products while shopping inside department stores.
Court documents reveal that Ames Watson has agreed to acquire at least 795 Claire’s stores in North America[/caption]
