Chinese and Asian suppliers in limbo over fashion chain Claire’s bankruptcy

In September, Ames Watson, a privately held investment firm with a track record in revitalising iconic brands, acquired Claire’s for US$140 million. Later that month, RSI International, Claire’s Hong Kong-based sourcing office, sought to transfer “certain assets and liabilities in connection with the business” to Tractus Asia, also based in Hong Kong, by October 31, 2025.

The move triggered an immediate legal fallout. Sebang Chain from South Korea – Claire’s supplier for more than 30 years – and its two subsidiaries in Asia filed suit in Hong Kong’s High Court against RSI and Tractus for allegedly refusing to pay overdue and pre-filing invoices and the asset transfer.

Sebang was facing US$1.5 million in overdue payments and about US$2 million worth of finished goods produced for Claire’s, according to sources familiar with the matter. The amount is equivalent to about three months of Sebang’s revenue. A writ of summons issued in late October sought US$1.43 million in unpaid balances, potential damages and interest.

Major US cosmetics vendor Pretty Woman filed a similar claim against RSI and Tractus for US$715,000 in outstanding receivables, according to a High Court filing in early October.