The once-bankrupt teen accessories giant Claire’s has found a new lifeline. Private investment firm Ames Watson has completed its $140 million acquisition of Claire’s North American business, betting on piercing services and leaner store formats to keep the brand relevant in the age of shrinking mall traffic.
Claire’s-storefront-at-489-Fulton-Street-in-Brooklyn. Image source：Claires
From Bankruptcy to Buyout: Claire’s Second Chance
Claire’s filed for Chapter 11 bankruptcy in August, its second in just seven years after a 2018 restructuring. Mounting debt, inflation, higher interest rates, and tariffs weighed heavily on the company, while lower-priced competitors chipped away at its market share. At one point, the retailer was reportedly preparing to liquidate its entire 1,500-store North American footprint.
Enter Ames Watson. The firm, known for its successful turnaround of Lids in 2019, worked with RCS Real Estate Advisors to preserve at least 800 Claire’s locations, with the possibility of expanding that number to 950. The strategy is not to chase sheer scale, but to refocus Claire’s as a destination for young consumers through elevated piercing services, refreshed merchandising, and redesigned store concepts.
Piercings, Personalization, and Cultural Relevance
Ames Watson is applying the same “playbook” that helped it breathe new life into Lids—prioritizing exclusivity, customization, and cultural resonance. Piercing, a core part of Claire’s brand identity, is set to become the centerpiece of this revival. This is no coincidence: competitor Studs has been aggressively expanding its own piercing-focused stores, with 10 new locations planned for 2025.
The challenge for Claire’s will be balancing heritage appeal with Gen Z and Gen Alpha expectations. As Lawrence Berger, co-founder of Ames Watson, put it: Claire’s “defines a stage of life—old enough to buy your first lip gloss, but still young enough to believe it could change your world.” That emotional connection could be a competitive advantage if the company modernizes fast enough.
Why This Acquisition Matters for Retail
Claire’s survival underlines a larger trend: mall-based retailers can still thrive if they shift from transactional retail to experiential engagement. By spotlighting piercing services and offering personalized merchandise, Claire’s aims to create reasons for young shoppers to physically visit stores—something pure e-commerce players cannot easily replicate.
Ames Watson also takes a distinct investment approach. Unlike traditional private equity firms, it deploys its own capital and manages operations directly with employees and vendors. That long-term orientation may give Claire’s the runway it needs to stabilize, rather than chasing short-term returns.
The Road Ahead
The Claire’s acquisition signals that even legacy mall brands, once written off as relics of the 1990s, can find relevance with the right mix of strategy and cultural positioning. Yet success is far from guaranteed. The company must contend not only with inflation and high interest rates but also with agile competitors like Studs that are shaping the future of affordable luxury piercings.
Still, if Ames Watson can replicate its Lids turnaround playbook, Claire’s could emerge as more than a nostalgic brand. It could become a case study in how mall retailers evolve in the face of relentless retail disruption.
This article references data and reporting from[RetailDive].