Claire's new owner Ames Watson feuds with Asia-based suppliers over millions in unpaid debt
The dispute with suppliers could complicate new owner Ames Watson's efforts to turn around the struggling mall retailer.
TL;DR
- Claire's faces legal action from Asia-based suppliers over millions in unpaid debts.
- Private equity firm Ames Watson acquired Claire's out of bankruptcy in September for $140 million.
- The dispute involves orders placed before Claire's second bankruptcy filing in August.
- Some suppliers continued working with Claire's after the acquisition without being paid for prior debts, while others have filed lawsuits.
- Claire's sourcing office, RSI International, filed to transfer assets, potentially limiting creditor recourse under Hong Kong law.
- Ames Watson stated they were not involved in pre-acquisition operational or purchasing decisions and are focused on rebuilding the business.
- The company claims to have inventory in place for the holiday season.
- Former CEO Ron Marshall noted the importance of supplier relationships for Claire's success, especially for ensuring the 'right product' is available.