FOLLOW US

Claire's Holdings LLC (“Claire's”), the iconic jewelry and accessories retailer, today announced that it has received interim approval for a $22.5 million debtor-in-possession (DIP) facility from a private holding company, as part of its ongoing Chapter 11 restructuring efforts.

U.S. Bankruptcy Judge Brendan L. Shannon of the District of Delaware granted the interim approval during a hearing in Wilmington, noting the evidentiary record fully supports the debtor's motion for post-petition financing. “What the court is presented with is … a game changer,” Judge Shannon stated, emphasizing the significance of this development in preserving the company's going-concern operations while exploring potential buyers.

The DIP lender, AWS Claire's LLC, is owned by a buyer group led by Ames Watson LLC. The group plans to acquire between 795 and 950 U.S. stores for $104 million in cash, a $36 million note, and additional benefits, according to court filings. The new facility will allow Claire's to resume inventory purchases and maintain operations during the Chapter 11 process.

“Access to the proposed DIP facility provides the company with essential liquidity to restock inventory and ensure continued vendor shipments,” said Amy Lee, Managing Director at Alvarez & Marsal North America LLC, a proposed restructuring adviser to Claire's.

Claire's filed for Chapter 11 protection on August 6 with approximately $690 million in funded debt, marking the company’s second Chapter 11 filing in under a decade. The retailer has faced challenges from a faltering e-commerce shift and rising operational costs, leading to a reduction in store acquisitions and customer base.

As part of its restructuring plan, Claire's intends to close 700 of its 2,300 U.S. locations while negotiating potential asset purchases. A second-day hearing is scheduled for September 9, during which the company will seek final approval of the DIP facility and conditional approval of a disclosure statement for a Chapter 11 plan.

Claire's is represented by Kirkland & Ellis LLP and Richards Layton & Finger PA. The case is filed under In re: Claire's Holdings LLC, Case No. 1:25-bk-11454, in the U.S. Bankruptcy Court for the District of Delaware.