Claire's Reduces Store Closures to 300 Following Buyout Offer
Claire's, a mall boutique chain favored by tweens, teens and young women, is set to close more than 290 stores as part of its bankruptcy process, reports USA Today. Stores to be closed include 235 Claire's locations in the U.S. and 56 Icing stores. The filing also listed 830 stores — 785 Claire's locations and 45 Icing locations — not expected to close immediately.
Claire's Holdings LLC filed for bankruptcy in early August, its second Chapter 11 filing in less than a decade. At that time, the retailer indicated plans to shutter 700 stores and was mulling liquidation of its entire 1,500-store footprint in North America as a buyer didn't come forward. On Aug. 20, Claire's announced it had sold its North American business to private equity firm Ames Watson for $104 million. The deal awaits court approval and has yet to close.
Total Retail's Take: Claire's North American business received an unexpected Hail Mary buyout offer just a few weeks into its recent bankruptcy filing. At the time of the sale, Ames Watson said it planned to preserve the retail chain in a downsized form. "Claire's has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion," said Ames Watson Co-Founder Lawrence Berger in a statement. "We are committed to investing in its future by preserving a significant retail footprint across North America."
Claire's has continued to struggle since filing for bankruptcy in March 2018. Backed by hedge funds Elliott Management and Monarch Alternative Capital, Claire's continued to operate with more than 2,300 retail locations across 17 countries in North America and Europe. However, as Claire's failed to catch up online and mall traffic dropped, competitors swooped in. Ames Watson is betting on the legacy of the brand and its ability to regain its place in the market.
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Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
