Newly filed court documents reveal that accessories retailer Claire’s could sell up to 77 Canadian stores as part of a sweeping deal with Maryland-based Ames Watson, a firm known for buying and reviving distressed consumer brands. The purchase price for the Canadian portion of the business has been set at US$2.3 million, though that figure will be reduced by US$1.3 million to cover service and professional costs.
The deal is part of Claire’s Canadian restructuring under court supervision and follows a parallel Chapter 11 filing in the United States. The company began liquidating 26 Canadian stores not included in the agreement after its August filing for creditor protection. The sale still requires approval from both Canadian and U.S. courts.
The documents specify that Claire’s U.S. operations will not participate in the first US$1 million of distributions from the Canadian business to unsecured creditors, a detail that may improve recoveries for domestic suppliers and landlords. At the time of its filing, Claire’s operated 103 leased store locations across Canada and employed over 700 workers.
If the deal is finalized, Ames Watson would inherit most of the surviving Canadian network, though future closures remain possible if profitability targets are not met.
A Retail Chain Under Pressure
Claire’s Canadian restructuring reflects a broader crisis facing the brand. Years of unprofitability, combined with declining mall traffic and rising costs, led the company to seek protection under the Companies’ Creditors Arrangement Act (CCAA) in Ontario. According to court filings, net losses had reached nearly CAD $8 million by mid-2025, while mounting debt obligations left the company unable to renegotiate many unprofitable leases.
The company’s troubles have been compounded by increased competition from e-commerce players and fast-fashion brands, along with inflation and tariffs that have pushed up import costs.
Store Network Across Canada
As of July 2025, Claire’s operated 120 stores nationwide, with the largest concentration in Ontario (45), Alberta (21), and British Columbia (19). The retailer also maintained a presence in Quebec, the Prairies, and Atlantic Canada. While stores remain open during restructuring, many are being reviewed for closure if rent relief or lease amendments cannot be secured.
Even with Ames Watson’s planned investment, the company may struggle to justify its current footprint if mall traffic continues to decline.
Global Context and Past Bankruptcy
Claire filed for Chapter 11 protection in the United States in August 2025, the second such filing in seven years. The chain, which Apollo Global Management took private in 2007, previously restructured in 2018 to address US$1.9 billion in debt.
Globally, Claire’s operates more than 1,500 stores under the Claire’s and Icing banners, along with locations in Walmart and other shop-in-shop formats. European divisions, including those in the UK and France, have entered administration or receivership, with additional closures anticipated.
Ames Watson’s Turnaround Playbook
Founded in 2017, Ames Watson has built a reputation for buying struggling but recognizable brands and attempting to engineer turnarounds. Its best-known acquisition came in 2019, when it purchased athletic headwear retailer Lids. Under Ames Watson’s ownership, Lids restructured its store base, improved inventory management, and focused on exclusive collaborations with sports leagues and celebrities.
The strategy ultimately stabilized Lids, which returned to profitability and began expanding again in key markets. Industry observers say this precedent offers some optimism for Claire’s Canadian restructuring, though they caution that the accessories chain faces a different set of challenges, particularly around shifting consumer habits and mall dependency.
Prospects for Claire’s Under New Ownership
Ames Watson has pledged US$104 million in cash and US$36 million on a seller’s note to acquire between 795 and 950 global Claire’s locations. The firm has said it hopes to maintain a “significant retail footprint,” though it has already announced the immediate closure of more than 290 stores, primarily in struggling malls.
Whether Claire’s Canadian restructuring will result in a viable, profitable network remains uncertain. The future of its 77 potentially retained stores will depend on landlord negotiations, sales performance during the coming holiday season, and Ames Watson’s long-term strategy.
If successful, the sale could stabilize the business and preserve hundreds of jobs. But if store traffic and revenues continue to decline, a second round of closures, or even full liquidation, could follow.
