Tween chain Claire’s is getting a rare third chance at retail life.

The twice-bankrupt retailer on Wednesday said its intellectual property and certain operations, as well as other related assets, will be acquired by an affiliate of private holding company Ames Watson.

A court document stated that Ames Watson will pay $104 million, subject to purchase price adjustments, in cash for the transaction. The purchase agreement also includes a $36 million “seller note,” payable to Claire’s upon closing that is also subject to purchase price adjustments. Ames Watson has already provided a $22.5 million deposit for the acquisition. Purchase price adjustments typically account for inventory at closing. The purchase price includes the assumption of certain liabilities, such as cure cost and administrative rent connected with certain assigned locations.

What’s more, the court document also indicated that Ames Watson has agreed to keep thousands of Claire’s staff employed, both at the locations it will keep open and including a significant number of employees at Claire’s headquarters in the Hoffman Estates suburb of Chicago, Ill.

This purchase will now allow Ames Watson to acquire and operate Claire’s business across North America, which includes the continued operation at a minimum of 795 store locations that could rise up to 950 stores. The balance of the current store fleet — between 310 to 465 locations, depending on how many Ames Watson elects to continue in operation — will be liquidated through a store closing process. The proposed sale, under the oversight of the bankruptcy court, still requires judicial approval by the courts in the U.S. and Canada, as well as the completion of certain customary closing conditions. Bankruptcy courts typically approve these sales because they keep staff employed, and help provide continued business to the retailer’s vendors and landlords.

“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,” Claire’s chief executive officer Chris Cramer said in a statement. “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.”

“Claire’s has built a powerful emotional connection with generations of consumers through its focus on self-expression, creativity, and accessible fashion,” Ames Watson’s co-founder Lawrence Berger said, also in a statement. “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 Ames Watson website said it has controlling stakes in caps brand Lids; apparel, socks and shoe brand Champion Teamwear, and apparel and shoe retailer South Moon Under, to name a few. It also has minority stakes in team sports and fan gear firm Fanatics; women’s shoe, sock and footwear accessories firm Margaux; the men’s apparel and shoe brand — co-founded by Super Bowl champion Russell Wilson and Grammy Award-winning singer and songwriter Ciara — and B-Corp Certified Good Man Brand, among others.

The Ames Watson website said its investment parameters include investments up to $500 million for controlling stakes and between $1 million to $100 million for minority positions.

Word surfaced earlier this year that Claire’s was in trouble. Those concerns grew after global reciprocal tariffs were announced in April because the tween accessories firm — it sells an assortment mix that includes jewelry, socks, slippers and hair accessories — relies heavily on a supply chain based in China. Retail price points range on average from $4.99 to $19.99, although a few items are as low as $1.99 and others could go as high as $49.99. There’s been chatter in the retail markets that Claire’s didn’t keep up with either teen trends or its competitors, such as Shein and Temu. Increased costs from higher tariffs also didn’t bode well for the chain, given the hit on margins and pressure from its debt load.

Claire’s is owned by Elliott Management Corp. and Monarch Alternative Capital, who were part of the creditor group that took control of the retailer after it filed for Chapter 11 bankruptcy court protection in March 2018. The bankruptcy helped Claire’s eliminate $1.9 billion of debt. It exited bankruptcy proceedings seven months after its March filing and at one point considered an initial public offering in 2021, but that plan was scrapped in 2023.

The chain headed back into bankruptcy court with its second filing earlier this month in the U.S. and in Canada, which included its core Claire’s and Icing store operations. The retailer’s European operations were not impacted by the filing.

Court documents filed earlier in the bankruptcy case had indicated that Claire’s would need to find a buyer or shut down. It was pursuing a dual-track process that included hiring Hilco Merchant Resources to liquidate stores set for closure. Claire’s operates 1,260 stand-along locations across North America, plus 210 shops-in-shop inside select Walmart stores.