RCS Real Estate Advisors, a firm specializing in real estate consulting focused on portfolio optimization and restructurings, announced that the acquisition of Claire’s Holdings LLC in North America by Ames Watson has been completed. As a result, the chain, known for its fashion accessories and piercings for teens and preteens, will continue operating under a more efficient and modern model, maintaining its popularity among consumers and its affordable pricing strategy.
RCS carried out accelerated due diligence and direct negotiations with property owners, reaching a preliminary agreement with hundreds of them in the United States and Canada within just a few days. Here’s everything we know about the process.
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How many Claire’s stores will remain open?
RCS’s work secured more than 800 locations, with the potential to expand up to 950, ensuring the brand’s continued presence in North America. Claire’s will maintain its presence in strategic markets such as:
- California
- New York
- Florida
- Illinois
What happened with Claire’s?
The company has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Delaware to maximize the value of its business. Its Canadian subsidiary also plans to pursue a similar proceeding in Ontario. The company aims to monetize its assets and continue exploring potential strategic partnerships. This decision responds to increasing competition, changes in consumer spending, declining foot traffic in physical stores, and economic pressures. Claire’s plans to secure liquidity during this process and stated that its North American stores will remain open and continue operating normally while the company explores future alternatives.
About Ames Watson
Ames Watson, founded in 2018 by Lawrence Berger and Tom Ripley, is a private conglomerate based in Columbia, Maryland, focused on acquiring, transforming, and partnering with companies to maximize long-term value. The company generates over $2 billion in annual revenue. Its portfolio includes well-known brands in which it actively invests, such as Lids, LidsU, Unrivaled Teamwear, South Moon Under, Mitchell & Ness, Ebbets Field Flannels, Zygo, Hungry, and Margaux.
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What is Chapter 11 of the U.S. Bankruptcy Code?
Chapter 11 allows companies to reorganize their debts, typically with the goal of continuing operations. It is one of the most complex bankruptcy procedures, in which the company must present a detailed reorganization plan and negotiate with creditors.
This legislation provides businesses with a chance for a fresh start, although it may also result in the partial transfer of asset ownership to creditors. As a result, business owners must carefully assess the costs and benefits before deciding to file for bankruptcy.
What benefits does Chapter 11 offer?
This section serves as an alternative to penalties, meaning that the company or individuals seeking it can avoid immediate dissolution, liquidation, and drastic cuts. During this process, the law allows the entity to continue operating and restructure without pressure from creditors. At the same time, it enables them to negotiate and propose a repayment plan for their debts.
Moreover, reorganization procedures under Chapter 11 offer the advantage that the company’s management retains control over the business, making the reorganization plans generally more effective, as the executives who stay in charge are the ones best familiar with the company, partnership, or individual involved.
