Tween retailer Claire’s reduced an initial store closing estimate by identifying roughly 300 locations to shutter, a move it said could leave about 800 in operation under the chain's new ownership.
The Hoffman Estates, Illinois-based retailer, parent of its namesake chain and Icing, filed for Chapter 11 bankruptcy protection earlier this month and named roughly 1,100 stores it would potentially close if it could not find a buyer for its properties. It warned that the company might be forced to liquidate.
But Claire's did find an acquirer for most of its assets a week ago, and on Monday filed an updated and pared-down store closing list with the court. This go-around, Claire's — a mainly mall-based retailer that sells jewelry and accessories to female tweens and teens — identified 291 stores for closing. The company also filed a list of 830 Claire's and Icing "non-closing" stores at this juncture.
Ames Watson, a Columbia, Maryland-based investment firm, plans to keep the chain alive by purchasing no less than 795 and potentially up to 950 of Claire's stores, as well as its intellectual property rights. Ames Watson is paying $104 million in cash plus a $36 million seller note in the deal. The stores that aren't included in the acquisition will continue their liquidation sales, being conducted by Hilco Merchant Resources.
Claire's declined to comment Tuesday, and Ames Watson didn't respond to an email from CoStar News seeking comment.
So far, there have been 24 major U.S. retail bankruptcies this year, according to Coresight Research. Last year, it tracked a total of 51 retail bankruptcies. The chains that have recently filed for Chapter 11, like Claire's, often cite the same financial woes: competition from online retailers; new rivals; changing consumer habits; the negative impact of tariffs; debt; and underperforming stores.
The revised store-closing list includes 235 Claire's and 56 Icing locations across various states. Just over two dozen of the stores are in California, with another 18 in New York, the two states losing the most locations.
The updated lists filed Monday were described as "interim" and are subject to change. The bankruptcy court will have to approve them and the sale must be finalized before the fate of each store is final.
This is the second time Claire's has pursued Chapter 11 proceedings, with the first in March 2018.