KATY, Texas (Covering Katy News) – Two popular Claire's locations serving Katy shoppers will remain open after the company's latest bankruptcy filing, while nearby stores face mixed outcomes.
Claire's Holdings has entered into an agreement with private holding company Ames Watson to acquire Claire's business operations in North America, the company said in a press release. The deal has saved the Claire's at Katy Mills, and the Claire's at LaCenterra from permanent closure.
The popular tween accessories store filed for Chapter 11 bankruptcy protection for the second time Aug. 6, spurring liquidation sales at some of Claire's more than 1,350 stores in the United States. Court documents showed the company owed its four largest creditors more than $14.7 million.
Good News for Katy Families
Both Katy-area Claire's locations were initially on the closure list but have been moved to the non-closing list thanks to the acquisition agreement. The nearby Houston Premium Outlets location in Cypress has also been saved from closure, giving local shoppers multiple options for the store's popular ear piercing services and teen accessories.
"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," Chris Cramer, CEO of Claire's, said. "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."
The Buyer
Ames Watson is a privately held holding company based in Columbia, Maryland, with more than $2 billion in annual revenue. Brands owned or invested in by Ames Watson include Lids, LidsU, Unrivaled Teamwear, South Moon Under, Mitchell & Ness, Ebbets Field Flannels, Zygo, Hungry and Margaux.
Claire's said that because of the agreement it has paused the liquidation process at "a significant number" of stores, but that liquidation will continue at other stores in North America.
In an Aug. 25 court filing, Claire's updated its list of stores that will close. There are 291 stores on the list of closures, while 830 stores are on the "non-closing" list.
Other Houston-area stores that avoided closure include locations at Pearland Town Center, The Woodlands Mall, Memorial City Mall, The Galleria (both locations), First Colony Mall in Sugar Land, and Willowbrook Mall.
Claire's said it will continue to provide updates on the sale process through its restructuring website. The company previously filed for bankruptcy in 2018.
This marks the second bankruptcy filing for the accessories retailer, but the acquisition deal offers hope for preserving the locations that serve Katy's young shoppers and their families.