Done Deal: Claire’s new owners plan to modernize, revitalize chain
Claire’s is now owned by the same private equity firm that grew Lids into a billion-dollar business.
Ames Watson completed its acquisition of the tween and teen accessories retailer for $140 million. The company said it is committed to preserving Claire’s heritage while positioning the company for sustained growth. It plans to modernize and revitalize Claire's, which filed for bankruptcy in August, by applying its “proven playbook for reigniting beloved retailers.”
The deal, which was announced in August, includes the continued operation of a minimum of 795 Claire's stores. As part of the agreement, Claire's paused the liquidation process at a large number of stores. (At the time of its filing, Claire’s had approximately 1,350 store locations in the United States and U.S. territories, with the total including Claire’s, Icing shop-in-shop locations.)
In taking over Claire’s, Ames Watson said it will focus on exclusivity, customization and cultural relevance, similar to its strategy for Lids. The firm acquired Lids in 2019 and subsequently grew it into a billion-dollar business with nearly 2,000 stores.
"Claire's is one of those rare brands that defines a stage of life – old enough to buy your first lip gloss, but still young enough to believe it could change your world," said Lawrence Berger, partner and co-founder at Ames Watson. "The passion for this brand has been overwhelming, and we're eager to include the community as we move forward."
Ames Watson said it plans to revitalize Claire’s in-store experience while preserving the “cultural relevance that has defined the brand since 1974.” Plans include elevated piercing offerings, refreshed merchandise, marketing and store concepts, with a goal to make every Claire's visit meaningful by “creating experiences that cannot be replicated online and keeping the mall a destination for discovery and connection.”
"Every turnaround we've done begins with people," said Tom Ripley, partner and co-founder at Ames Watson. "Claire's has an incredibly passionate field team – many with 20 years or more in these stores - and their loyalty will be the foundation of this next chapter."
Founded by Lawrence Berger and Tom Ripley in 2018, Ames Watson is a privately held holding company based in Columbia, Md. Brands owned or invested in by Ames Watson include Lids, LidsU, Champion, South Moon Under, Mitchell & Ness, Ebbets Field, Zygo, Hungry and Margaux.
Ames Watson said it differentiates itself by investing its own capital, not investors', eliminating short-term performance pressures, and enabling a longer investment horizon. The firm works directly with store employees, merchants, and vendors to manage operations, instead of outsourcing.
Advisors
Paul Hastings LLP is serving as legal counsel to Ames Watson and RCS Real Estate Advisors is serving as a real estate consultant
