Accessories retailer Claire’s has agreed to sell its business operations in North America to private holding company Ames Watson as part of its ongoing Chapter 11 process.

The sale includes Claire’s intellectual property and a “significant number” of stores in the US and Canada, with financial details not disclosed.

The move comes after the company commenced voluntary Chapter 11 proceedings in the US and proceedings in Canada under the Creditors Arrangement Act earlier this month.

As part of the agreement with Ames Watson, Claire’s has paused the liquidation process at the stores included in the sale. Liquidation at the remaining stores in North America will continue.

The sale is still subject to approval by the courts in the US and Canada, and other customary closing conditions.

“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,” said CEO Chris Cramer. 

“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.”

Lawrence Berger, co-founder of Ames Watson, said his company will work closely with Claire’s team to ensure a seamless transition and create a renewed path to growth for the brand.

This month’s Chapter 11 marked Claire’s second bankruptcy filing in recent years, with the first taking place in 2018. In its latest filing, the company listed assets and liabilities each ranging between $1 billion and $10 billion, as well as between 25,001 and 50,000 creditors.

The chain has been struggling with both internal and external problems, including high debt levels and tariffs, according to an analyst.

Ames Watson owns and invests in brands such as Lids, Unrivaled Teamwear, Mitchell & Ness, Zygo and Margaux, with an annual revenue of more than $2 billion.