Claire’s reverses mass closures after a last-minute private equity deal that has given the iconic teen accessory brand a new lease on life. The sudden turnaround follows a dramatic financial collapse that threatened to wipe out hundreds of stores across North America. Now, thanks to a $140 million acquisition, the company is set to remain open for business, saving jobs and stabilizing its future.
Claire’s Financial Struggles Resurface
Claire’s, known for selling low-cost jewelry, accessories, and offering ear-piercing services to teens and tweens, filed for Chapter 11 bankruptcy in early August 2025. This marked the second time in just seven years the company had entered bankruptcy court, underscoring long-standing financial challenges.
At the time of filing, Claire’s revealed it had debts estimated between $1 billion and $10 billion. Much of this financial pressure stemmed from a looming $500 million loan due by December 2026. These debts became unsustainable, especially in a tough retail market with declining mall traffic and rising operating costs.
The initial bankruptcy plans included closing 700 stores across the U.S. and Canada, with additional closures expected. At its peak, Claire’s operated around 1,500 locations in North America, including its main brand and Icing stores. The closures would have marked a major contraction for the once-dominant shopping mall brand.
Private Equity to the Rescue
Just weeks after filing for bankruptcy, Claire’s announced that it had reached a deal to sell its North American business to private equity firm Ames Watson. The total value of the deal was reported to be $140 million. Of this, $104 million would be paid in cash and $36 million would come as a seller’s note.
As part of the agreement, Ames Watson would also take over key liabilities. This includes obligations such as store rent, vendor payments, and employee wages—allowing Claire’s to continue operating during bankruptcy proceedings.
The deal also included a $22.5 million debtor-in-possession loan to help finance day-to-day operations as the transition took place.
This agreement provided a lifeline for the brand, giving Claire’s the resources and stability it needed to halt closures and preserve hundreds of its locations.
Closures Halted and Jobs Saved
Thanks to the Ames Watson deal, Claire’s reversed its plan for mass closures. Instead of shutting down 700 or more stores, the retailer now plans to keep between 795 and 950 stores open in the U.S. and Canada.
This shift means many employees who were at risk of losing their jobs will now remain employed. Store staff, managers, and corporate employees will continue to operate under the new ownership structure. It also means loyal Claire’s customers will still be able to shop at their favorite local stores, which were previously set to close.
This move is seen as a significant victory in a retail landscape where store closures and job losses have become common.
A Long Search for a Buyer Claire’s reverses
Claire’s leadership revealed that the sale to Ames Watson came after an extensive search for a viable buyer. The company reached out to more than 160 financial and strategic firms and entered into confidentiality agreements with over 60 of them. This process aimed to explore all potential avenues to avoid liquidation.
Ultimately, Ames Watson emerged as the most promising and committed partner. The firm is known for acquiring and revitalizing consumer-facing brands and has expressed a long-term interest in strengthening Claire’s market position.
Lawrence Berger, co-founder of Ames Watson, described Claire’s as an iconic brand that resonates strongly with consumers. He emphasized the firm’s intention to invest in the company and help it evolve to meet the needs of a new generation of shoppers.
What Happens Next
While the deal provides immediate relief, it is still subject to approval by the U.S. and Canadian bankruptcy courts. Until then, Claire’s will operate under the terms of its bankruptcy filing, supported by the financing included in the agreement.
In addition, Claire’s has a “fiduciary out” clause, which allows it to consider better offers should they arise before the deal is finalized. This is a standard part of most acquisition agreements during bankruptcy and helps ensure the company maximizes its value for creditors and stakeholders.
If approved, the acquisition will transfer ownership of Claire’s North American operations, trademarks, and intellectual property to Ames Watson. This would mark a new chapter for the brand as it seeks to regain stability and growth under new leadership.
Claire’s in Context
Claire’s is one of several well-known retail chains that have faced serious financial pressure in recent years. As shopping behavior shifts and online competition grows, traditional mall-based retailers have struggled to stay profitable.
Companies like Forever 21, Macy’s, JoAnn Fabrics, and others have all faced bankruptcies or significant restructuring efforts. Claire’s own difficulties reflect these broader trends in the retail world, where changes in consumer habits and rising costs continue to challenge established brands.
What makes Claire’s different, however, is the emotional connection it has maintained with its customers. For many, Claire’s is a rite of passage—a place where they got their ears pierced, bought their first piece of jewelry, or shopped with friends during a mall trip. That brand loyalty may prove to be a key asset moving forward.
The Path Forward
With the financial backing of Ames Watson, Claire’s has the opportunity to make a real comeback. The new owners will need to focus on several key areas to ensure long-term success:
- Modernizing stores and digital channels to better engage younger consumers
- Strengthening inventory management to reduce costs and improve profitability
- Expanding global and e-commerce presence to grow beyond mall traffic reliance
- Leveraging the brand’s nostalgic value while adapting to today’s trends
If managed carefully, Claire’s could return to stable operations and even growth under its new ownership. The brand’s legacy, paired with strategic investment, offers a strong foundation for a turnaround.
Why It Matters
The Claire’s turnaround story is important for several reasons:
- It saves hundreds of retail jobs at a time when layoffs are common across the industry.
- It provides a hopeful example of how private equity can play a positive role in restructuring.
- It shows the potential for legacy brands to survive and thrive with the right support.
For shoppers, it means continued access to the fun, affordable, and nostalgic shopping experience that Claire’s is known for. For employees, it brings job security and continuity. And for the retail sector, it offers a rare example of a bankruptcy process ending with a new beginning.
Conclusion
Claire’s reverses mass closures after securing a private equity deal that may define the future of the beloved retailer. With hundreds of stores saved, jobs preserved, and a renewed strategy in place, Claire’s is set to continue delighting young shoppers for years to come.
While challenges remain, the deal with Ames Watson has offered a second chance. If all goes according to plan, Claire’s will emerge from bankruptcy stronger, smarter, and more resilient than ever.
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