Claire’s acquisition closes with plans for smaller store footprint

Dive Brief:

Private investment firm Ames Watson has finalized its acquisition of the Claire’s North American business for $140 million, per a Friday press release. The group has worked with RCS Real Estate Advisors to keep at least 800 stores open, with the potential to reach 950, per a separate release.
The group says it “is committed to preserving Claire’s heritage while positioning the company for sustained growth,” per the release. Ames Watson intends to keep malls a destination for consumers by elevating the Claire’s piercing service, in addition to refreshing its merchandise and store concepts.
The investment firm will use a similar playbook to the one it executed after buying Lids, focusing on exclusivity, customization and cultural relevance. The acquisition adds to Ames Watson’s existing retail portfolio, which includes controlling investments in South Moon Under, Ebbets and more.

Dive Insight:

Claire’s joins the list of retailers saved from the industry’s graveyard.

“Claire’s is one of those rare brands that defines a stage of life – old enough to buy your first lip gloss, but still young enough to believe it could change your world,” Lawrence Berger, partner and co-founder at Ames Watson, said in a statement. “The passion for this brand has been overwhelming, and we’re eager to include the community as we move forward.”

Ames Watson co-founder and partner Tom Ripley added that Claire’s has a passionate field team, which the firm will rely upon for the retailer’s next chapter.

That might be music to the field staff’s ears, as Claire’s was considering the liquidation of its full 1,500-store footprint in North America until Ames Watson stepped in.

Claire’s filed for Chapter 11 bankruptcy in August, marking its second bankruptcy after filing in 2018. 

In its latest bankruptcy filing, the company cited the impacts of interest rate hikes, inflation, tariffs and competition from comparable retailers with lower pricing. 

One of the top players in retail piercings has been Studs, which Claire’s previously tried to compete directly with for Gen Z and Gen Alpha’s attention. Studs has been in growth mode over the past few years by expanding its footprint, planning to open another 10 locations in 2025, according to WWD reporting in February.

For Ames Watson, the Claire’s acquisition is intended to be like the success it touts from acquiring Lids in 2019.

The investment group says that it invests its own capital (as opposed to investors’ money) into its deals and focuses on long-term success instead of “short-term performance pressures.” Choosing not to outsource the managing of operations, it works directly with employees, merchants and vendors.