On December 11th, 2024, people walk through Claire’s shop in San Rafael, California.
Justin Sullivan | Getty Images
Claire is heading for a major transformation.
The tween retailer known for its ear-hole stations, gems and purple carpets declared bankruptcy in early August.
A few weeks later, private holding company Ames Watson announced it would acquire around 1,000 Claire stores across North America in a $140 million deal to rebuild the brand. The announcement paused the liquidation process at most Claire stores.
“We went and started doing very deep due diligence. We came to the conclusion that this is not a broken brand, it’s a broken business,” Lawrence Berger, co-founder of Ames Watson, told CNBC.
Ames Watson’s portfolio includes other business makeovers, including the HAT retailer Lid and the female retailer South Moon Under. Burger believes the company, which earns more than $2 billion, is a “mini Berkshire Hathaway” in itself, buying and transforming it without the intention to sell it.
In addition to the debts above it, Claire faces many challenges. Retailers are expected to face headwinds from President Donald Trump’s global tariffs, and the mall has seen traffic drops over the past few years. Competitors like Stud and Lovisa also pop up, aiming to provide a sophisticated, ear-punching experience.
Tom Ripley, co-founder of Ames Watson, said Claire was first introduced over a decade ago through her twin daughters who stabbed her in the ears at one of the retailers’ stores. Ripley said the experience, coupled with the customer’s loyalty to the brand, showed him that it was worth investing.
“It’s a Girls’ Generation Temple and where you buy your first lip gloss, a friendship bracelet, and your first earrings,” Ripley told CNBC. “Clair was a ritual of passing through generations.”
Regeneration plan
Ames Watson has identified three core areas from the company’s research that it believes is at the heart of merchandising, labor and marketing, which is the heart of Claire’s revitalization. At the same time, the co-founders said they intended to preserve the highly central Claire identity of millennials.
With merchandising, Berger said the company plans to update its in-store products to reflect current trends while also retaining the classic look of Claire’s products. New products could include collaboration or exclusive, he adds, and the company is focusing on a line of products that have been specifically curated for sleepovers.
“I think merchandising is probably 70% pretty good, but 30% need to change,” Burger said. “So I think it’s going to take six or nine months for customers to see it.”
Ames Watson also plans to increase sales staff pay, benefits and training, including a dedicated “Piercing Excellence Team” that travels around the country and drills holes in every store. The piercing station itself will also receive an upgrade, Burger added.
Finally, the new Claire will lean towards fresh marketing that connects with the company’s nostalgia, bringing customers with each new step in that makeover, the co-founder said.
“We’re very open to our community about what we’re changing, and we hope we can really connect with them and build relationships that last for many years,” Berger said.
Claire co-founders Tom Ripley and Lawrence Burger
Photo: Ames Watson
The co-founder said the strategy, by covering up a business that has been revitalized from struggling retailers, informs how they are approaching Claire. Ames Watson acquired Lids in 2019 for $100 million, increasing the company’s revenue, strengthening its in-store embroidery experience and increasing employee pay.
In Claire’s case, the embroidery is as central to the brand as it is an experience that customers can’t get online, Ripley said. The framework for modernizing the lid without losing important business pieces focused on products, experiences and people is the same as Ames Watson plans to use for Claire.
“We don’t overlap, we don’t outsource our efforts and we don’t turn our business over,” Ripley said. “We roll up our sleeves, do our job ourselves and build for the next generation.”
Ripley said nostalgia is at the heart of Claire’s brand, and the company focuses on modernizing Claire without losing “magic.”
The storefront has also undergone improvements, with iconic purple carpets providing fresh cleaning and product presentations being upgraded.
“Part of Claire’s wonder and fun is his ability to walk through the store, and he doesn’t know what to expect. “We don’t want to change that.”
The co-founder said he hopes Claire’s rebirth will talk to a millennial mother who will take her children to the store. The pair said the company is experimenting with adding products to the store for a generation of women who grew up at Clare heights.
With these changes, Ripley and Berger said they hope Claire will reappear as a major player once in the American malls.
“Our hope is that we make a profit from day one. That’s our investment paper, and frankly, it’s a healthy company,” Berger said. “We believe it’s structured to make a profit, but that means we have to get the job right.”
