Claire’s has drastically scaled back its store closure plans, according to revised documents filed with the U.S. Bankruptcy Court in Delaware last week. The tween accessories retailer now expects to shutter 291 locations, including namesake and Icing stores, down from at least 700 announced last month.
The company was also mulling liquidation, which would have entailed shuttering its entire 1,500-store fleet in North America. The about-face follows an offer last month from private equity firm Ames Watson to acquire the mall-based chain for $140 million, including $104 million in cash. That deal awaits court approval and has yet to close.
Claire’s filed for bankruptcy in early August, its second Chapter 11 filing in less than a decade. At that time, it seemed unlikely that the company would find a buyer.
Tariffs appear to have been the final straw for a retailer already battling a surge in competition, a mound of debt and lingering macroeconomic and supply chain effects from the pandemic.
