Maryland-based investment firm Ames Watson is set to acquire as many as 77 Claire’s locations in Canada as part of a broader purchase of the jewelry retailer’s global business, according to new Ontario court filing.

Ames Watson previously agreed to acquire the Canadian stores as part of a proposed purchase of Claire’s North American operations. But the number of Canadian stores to be acquired was not known due to a liquidation process that had begun before the deal was announce. The liquidation process subsequently ended.

The Canadian stores are being sold for US$2.3 million, with the price reduced by US$1.3 million to cover service fees and advisor costs.

Ames Watson has agreed to pay US$140 million for the North American business, including US$104 million in cash and a US$36-million seller note for at least 795 global stores, with the potential to acquire up to 950.

Claire’s operated 103 leased stores in Canada at the start of September, but has closed a number of stores since then.

The company filed for Chapter 11 bankruptcy in the U.S. and creditor protection in Canada.

KSV Advisory is serving as the court monitor in Canada and made the filing. Five interested parties signed letters of intent to buy the Canadian business. But only two, including Ames Watson, contemplated having it continue as a going concern. Claire’s and its investment bank Houlihan Lokey concluded that Ames Watson was the only one that would keep the business going.

The Canadian court filings and other documents are available at www.ksvadvisory.com/experience/case/claires.

Additional information on the U.S. proceedings is available at www.omniagentsolutions.com/claires.

Photo: Claire’s