Claire's sells NA unit to Ames Watson, keeps up to 950 shops

Claires has agreed to sell the bulk of its North American business and intellectual property to private-equity owner Ames Watson for about $104 million in cash, plus a $36 million seller’s note and noncash concessions, in a deal that could keep as many as 950 Claires locations open across North America. The sale, which is subject to approvals by courts in the United States and Canada and other customary closing conditions, would preserve a substantial retail footprint while allowing the bankrupt jewelry retailer to address preexisting obligations as it restructures.

Claires filed for Chapter 11 protection on Aug. 6 with debts exceeding $690 million, a move prompted by intensified competition from online discount retailers and new brick-and-mortar entrants, alongside mounting store costs and tariffs on imported goods. The company, which operates roughly 1,350 stores in the United States and territories (including Icing and Walmart shop-in-shop locations), has warned that a large number of outlets could be shuttered if no buyer emerged. The filing followed a period in which Claires had already explored strategic and financial partnerships and sought to avoid a wholesale shutdown...