Jewelry retailer Claire’s has agreed to sell its North American operations to an affiliate of Ames Watson for US$104 million.

The proposed deal comes after Claire’s Canada obtained creditor protection in an Ontario court in response to the American arm filing for Chapter 11 bankruptcy in the U.S. If all goes according to plan, the intended ownership change will keep hundreds of Claire’s stores open after they were in danger of closing, according to multiple reports.

The proposed deal calls for Ames Watson to acquire Claire’s stores across Canada and the U.S., and intellectual property, subject to court approval in both countries and other customary closing conditions.

Hoffman Estates, Ill.-based Ames Watson, acquires and partners with businesses to create long-term value.

As part of the proposed sale, Claire’s has paused the liquidation process at what the retailer calls “a significant number” of its stores, though liquidations will continue at other outlets. The transaction is intended to support Claire’s broader restructuring efforts.

“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,” said Chris Cramer, CEO of Claire’s. “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.”

Lawrence Berger, co-founder of Ames Watson, said the company is committed to investing in the retailer’s future.

“We are pleased to have the opportunity to partner with Claire’s and support the next chapter for this iconic brand,” said Lawrence Berger, co-founder of Ames Watson. “Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion. We are committed to investing in its future by preserving a significant retail footprint across North America, working closely with the Claire’s team to ensure a seamless transition and creating a renewed path to growth based on our deep experience working with consumer brands.”

Claire’s sought, and obtained, creditor protection under the Companies’ Creditors Arrangement Act in Ontario after Claire’s successfully submitted an application under Chapter 11 proceedings in Delaware. The approvals allow the company to restructure its operations while keeping North American stores open and maintaining commitments to employees, customers and partners.

KSV Advisory has been appointed as the court monitor in Canada. 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