Jewellery and accessories retailer Claire’s has reached an agreement for an affiliate of Ames Watson, a private investment firm, to purchase its North American operations. The company has been undergoing restructuring through voluntary Chapter 11 proceedings in the United States and under the Companies’ Creditors Arrangement Act (CCAA) in Canada.

“As we continue through our restructuring proceedings, our team has worked tirelessly to explore every option for preserving the value of the Claire’s business and brand,” said Chris Cramer, CEO of Claire’s. “We are glad to reach this definitive agreement to sell a portion of our North America operations to Ames Watson and maximize the value of our company for all our stakeholders. I would again like to extend my gratitude to every Claire’s employee who has continued to show up for our customers during this challenging time for our business.”

Under the terms of the agreement, the sale would include Claire’s retail locations and intellectual property. As a result, liquidation has been suspended at a number of stores, while it continues at others. The transaction is subject to court approval in both countries, as well as standard closing requirements.

Claire’s stated that it will provide further information on the process through court filings as developments occur.

In 2018, the jewellery retailer entered Chapter 11 bankruptcy. While the company experienced a period of stability in the following years, even weathering a sales slowdown during the COVID-19 pandemic, its recent results have declined. Court filings indicate that the downturn is driven in part by growing competition from online fashion and jewelry platforms such as SHEIN, as well as from niche retailers that specialize in ear-piercing services.

Founded in Chicago in 1961, Claire’s now operates more than 2,500 stores across 17 countries across North America and Europe. The brand is best known for targeting girls and teens aged three to 18 with affordable fashion items and ear-piercing services.