Bankrupt fashion accessories chain Claire’s is selling the brand rights and much of its North American business to an investment fund that plans to maintain a significant retail footprint in the region.
“Investing in the future”
Claire’s is selling its intellectual property and a significant portion of its North American stores to Ames Watson, an investment fund with revenues of more than two billion dollars, which it says buys and transforms businesses to create long-term value. Co-founder Lawrence Berger said in the press release that the fund is committed to investing in its future by preserving a significant retail footprint across North America.
Claire’s had more than 2,300 stores in seventeen countries in North America and Europe, but filed for creditor protection earlier this month – the second time since 2018. The retailer has 690 million dollars (600 million euros) in debt as it suffered in recent years from increasing competition from low-cost online platforms, high rental costs and import duties on supplier countries such as China, Thailand and Vietnam.
As a result of the liquidation in the United States, Claire’s European subsidiaries are also falling one by one. In Belgium, the Netherlands, France and the United Kingdom, among others, the retail chain already went bankrupt.
