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Retracted planned store closures for Claire's to a total of 300, after receiving a $140 million buyout proposition

Mall chain on the brink of bankruptcy plans to close 700 locations and potentially liquidate its entire 1,500-store North American operation.

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Retail store chain Claire announces reduction of closures to 300 locations, following a proposed...
Retail store chain Claire announces reduction of closures to 300 locations, following a proposed buyout of $140 million.

Retracted planned store closures for Claire's to a total of 300, after receiving a $140 million buyout proposition

Claire's, the popular mall-based accessories retailer, is set to close 291 of its stores following a $140 million acquisition deal. The deal, made by private equity firm Ames Watson, is pending court approval and has not yet closed.

The revised plan, a departure from the original one announced last month, now includes the closure of both Claire's and Icing stores. Previously, the company was considering liquidation, which would have involved closing its entire 1,500-store fleet in North America.

The retailer's bankruptcy filing in early August marked its second Chapter 11 filing in less than a decade. The move was due to a combination of factors, including tariffs, increased competition, a mountain of debt, and lingering effects from the pandemic on the economy and supply chain.

Despite the bankruptcy filing, Claire's managed to secure a potential buyer. The acquisition offer by Ames Watson could potentially save a significant number of Claire's stores from closure. Under the revised plan, Claire's and Icing stores will close 291 locations instead of the previously announced 700.

The acquisition offer includes $104 million in cash. The deal, which is pending court approval, also includes this cash sum. The unexpected offer came as a surprise, as it seemed unlikely that the company would find a buyer following its bankruptcy filing.

The acquisition deal, if approved, would save a portion of Claire's stores from closure. The closure of these stores would have had a significant impact on the company's employees and customers. The exact number of stores that will remain open after the deal is finalised is yet to be confirmed.

This news brings a glimmer of hope for Claire's and its loyal customers. As the deal moves closer to approval, it remains to be seen how this acquisition will shape the future of the retailer.

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