Listen to this articleThe basics:
- Claire’s plans 234 store closures following Chapter 11 filing
- Seven Claire’s and Icing stores to shut down in N.J.
- Ames Watson to acquire Claire’s in $140M deal
- Dozens of Claire’s and Icing stores in NJ set to remain open
At least seven Claire’s and Icing brand stores in New Jersey will be among the hundreds of closures connected to the tween accessories seller’s recent Chapter 11 bankruptcy.
In an Aug. 25 filing in U.S. Bankruptcy Court for the District of Delaware, the Illinois-based retailer said it expects to shutter 234 locations and keep 950 stores open.
Claire’s did not include a timeline for when those outposts will wind down but said they will go dark after private equity firm Ames Watson finalizes its acquisition of the chain.
Within New Jersey, Claire’s closing stores are:
- East Brunswick – Brunswick Square
- Mays Landing – Hamilton Mall
- Paramus – Bergen Town Center
- Vineland – Cumberland Mall
- Westfield – 141 East Broad St.
The company will also close the following Icing brand stores:
- Deptford – Deptford Mall
- Wayne – Willowbrook Mall
Founded in 1961, Claire’s sells accessories such as bracelets, hair clips, necklaces, purses and soft toys. The chain is known for offering ear-piercing services.
Economic challenges
Keeping the lights on
According to this week’s court filing, Claire’s expects to maintain the following stores in New Jersey:
- Blackwood Gloucester Premium Outlets
- Bridgewater Bridgewater Commons
- Cherry Hill Cherry Hill Mall
- Clifton River Front Center
- Deptford Deptford Mall
- East Rutherford American Dream
- Edison Menlo Park Mall
- Elizabeth The Mills at Jersey Gardens
- Freehold Freehold Raceway Mall
- Jersey City Newport Centre
- Lawrenceville Quaker Bridge Mall
- Moorestown Moorestown Mall
- Paramus Westfield Garden State Plaza
- Paramus Paramus Park
- Rockaway Rockaway Townsquare
- Tinton Falls Jersey Shore Premium Outlets
- Toms River Ocean County Mall
- Wayne Willowbrook Mall
- Woodbridge Woodbridge Center
Icing will also stay open at:
- Edison Menlo Park Mall
- Toms River Ocean County Mall
Following its first bankruptcy in 2018, former creditors including Elliott Management Corp. and Monarch Alternative Capital acquired Claire’s. At the time, the chain had over 4,500 shops.
The retailer tried to go public for a second time in late 2021 but withdrew its initial public offering plans two years later. The company’s first failed attempt to list occurred in 2013, according to Chain Store Age.
Citing a slowdown in consumer spending and supply chain uncertainty, the once beloved mall staple filed for Chapter 11 earlier this month.
As part of its Aug. 6 court filings, Claire’s said it planned to close 700 locations across the U.S. and Canada. The chain also warned it may need to liquidate its entire physical footprint in North America if efforts to sell its assets fall short.
Almost all of Claire’s roughly two dozen locations in New Jersey might have closed if a buyer didn’t materialize, the company said. In a filing with the New Jersey Department of Labor & Workforce Development, Claire’s said it expected to eliminate 155 jobs across the state by Nov. 3.
‘Next chapter’
Less than two weeks after declaring Chapter 11, Claire’s announced plans to see off most of its North American business to Ames Watson.
Under the terms of the deal announced Aug. 20, the firm will acquire Claire’s for $104 million in cash plus a $36 million seller note. The transaction includes a $22.5 million debtor-in-possession loan to help the brand stay operational throughout the bankruptcy process.
Additionally, Ames Watson would suspend the liquidation process at a “significant number” of the chain’s roughly 1,500 stores across the U.S. and Canada by agreeing to purchase between 795 and 950 Claire’s units.
The agreement also includes Claire’s intellectual property rights.
The sale is subject to approval by courts in the U.S. and Canada and customary closing conditions.
Headquartered in Maryland, Ames Watson is a private holding company with more than $2 billion in revenue. Its investment portfolio includes brands like Lids, Fanatics and Champion.
Commenting on the proposed deal with Claire’s, Ames Watson co-founder Lawrence Berger said his company will “support the next chapter for this iconic brand.”
“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion. We are committed to investing in its future by preserving a significant retail footprint across North America, working closely with the Claire’s team to ensure a seamless transition and creating a renewed path to growth based on our deep experience working with consumer brands,” Berger continued.
