Ames Watson has agreed to acquire Claire’s North America operations in a $140m deal, pausing the retailer’s planned liquidation and store closures, according to a report by Retail Dive.

The agreement, disclosed in U.S. court filings, consists of $104m in cash and a $36m seller note, along with the assumption of certain liabilities, including rent and wages for employees. The private equity firm will acquire at least 795 stores, with the potential to expand its ownership to 950 locations.

Claire’s, which entered bankruptcy earlier this month, had warned it could close its 1,500-store North American footprint after announcing plans to shutter 700 locations. The deal ensures nearly all store employees, as well as many at the company’s headquarters, will retain their jobs.

The transaction also enables Claire’s to repay its asset-based loan in full. Ames Watson, which has previously invested in brands including Lids, Champion, South Moon Under, and Fanatics, said the transaction underscores its commitment to preserving the retailer’s footprint.

“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion,” said Lawrence Berger, co-founder of Ames Watson. “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.”

The acquisition remains subject to approval by courts in the U.S. and Canada.

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