Popular mall retailer Claire's has agreed to sell a portion of its business operations to Ames Watson, pausing liquidation amid its recent bankruptcy, according to a court filing obtained by AL.com.

The sale “will allow the Claire’s brand to remain a prominent retailer for teens, tweens, and young girls around the world,” the court filing, which was made on August 20, states. Claire's, which specializes in tween accessories, announced its filing for bankruptcy for a second time in a seven-year span earlier this month. The company will now pause the liquidation of nearly 1,000 stores, though 13 locations, as well as Icing, another brand owned by the company, will still close.

“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 of Claire’s, via AL.com.

“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. 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.”

The store had previously filed for bankruptcy protection in 2018, at which point it was taken over by creditors Elliott Management Corporation and Monarch Alternative Capital. The creditors eliminated $1.9 billion of debt and the store saw some reported sales momentum in 2021, however, still struggled to modernize in the e-commerce world with failed efforts to expand retail partnerships with other companies such as Walgreens and Walmart, a loyalty program and investments in influencer-based content.

“Claire’s was not immune from the continued trend away from brick and mortar and more recent macroeconomic challenges, including higher interest rates, labor costs and, most recently, tariffs,” the company said in a bankruptcy declaration filed last Wednesday (August 6) via CNBC. “While Claire’s took many steps over the last few years to address these and other challenges, it was not enough to overcome the obstacles.”

Claire's is among several notable major retailers to have filed for bankruptcy within the last decade including Party City, Z Gallerie, Forever 21 and Rite Aid.

“What we’re typically seeing in the last year are these repeat filers is that they are just liquidating and closing down their stores, maybe with some online presence continuing,” said Sarah Foss, global head of legal at Debtwire, via CNBC.

Claire's said it had contacted more than 150 potential buyers in the months leading up to its bankruptcy filing and received multiple letters of intent amid continued negotiations, with a deadline for a possible sale set for August 31.

Brooke Taylor

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