Claire’s Holdings LLC announced a deal that will see its North America business acquired by an affiliate of the private equity firm Ames Watson.
Claire’s filed for Chapter 11 bankruptcy earlier in August, paving the way for the retailer to sell off its assets. The new agreement means that the liquidation process will pause for some Claire’s stores. However, it will continue for others.
Claire’s ranked No. 390 in the Top 2000 before the bankruptcy was announced on Aug. 6. The Top 2000 Database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales. There, it falls under the Jewelry category.
Who will acquire Claire’s stores?
The Ames Watson affiliate acquiring Claire’s assets will take over its North America business operations as a result of the deal. In addition, the sale will include Clair’s intellectual property. Ultimately, courts in the U.S. and Canada will need to approve the acquisition as other closing conditions are met. Court filings show that the transaction will take place for $104 million in cash plus a $36 million seller note.
“We are pleased to have the opportunity to partner with Claire’s and support the next chapter for this iconic brand,” said Lawrence Berger, a co-founder of Ames Watson. “Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion.”
Ames intends to maintain a physical presence for Claire’s stores. Looking ahead, it plans to pursue a strategy toward renewed growth for the brand.
“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,” Berger stated.
Next steps for Claire’s
“As we continue through our restructuring proceedings, our team has worked tirelessly to explore every option for preserving the value of the Claire’s business and brand,” said Chris Cramer, CEO at Claire’s. “We are glad to reach this definitive agreement to sell a portion of our North America operations to Ames Watson and maximize the value of our company for all our stakeholders.”
In the meantime, Claire’s is continuing to post updates as it advances through the bankruptcy process. Those documents are visible on a website managed by Omni Agent Solutions. That firm is currently acting as a claims agent for Claire’s.
“I would again like to extend my gratitude to every Claire’s employee who has continued to show up for our customers during this challenging time for our business,” Cramer added in a statement shared with the acquisition announcement.
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