Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Thursday, August 21. In today's briefing, tween retailer Claire’s has struck a deal in bankruptcy to sell its North American operations and intellectual property to investment-management firm Ames Watson that would keep between 795 and 950 stores open. Healthcare services company Modivcare has filed for chapter 11 bankruptcy in Texas, with a restructuring plan supported by its secured lenders that will slash over $1 billion in debt. And a bankruptcy judge has temporarily blocked Yale New Haven Health Services' bid to get out of its 2022 deal to acquire three Connecticut hospitals from Prospect Medical, delaying a decision to Sept. 23.

Tween retailer Claire’s has struck a deal in bankruptcy to continue operating a fraction of its stores under new ownership.

The company said in court papers filed Wednesday that investment-management firm Ames Watson has agreed to acquire between 795 and 950 of its North American stores through a subsidiary. Claire’s operated 1,970 stores in North America when it filed for chapter 11 earlier this month, according to the papers, submitted to the Delaware bankruptcy court.

Ames Watson, which owns other retailers including Lids, South Moon Under and Champion Teamwear, was the “only viable” buyer that would allow the company to continue operating, Claire’s said in court records. The deal will preserve thousands of jobs, according to Claire’s.

Modivcare filed for chapter 11 protection in the Southern District of Texas on Wednesday as part of restructuring backed by its secured lenders. The healthcare services company, which provides non-emergency medical transportation, personal care and remote patient monitoring, said more than 90% of its first-lien lenders and over 70% of second-lien lenders have signed on to a restructuring support agreement.

As part of the plan, lenders will provide $100 million in debtor-in-possession financing, giving Modivcare liquidity through the bankruptcy process. The restructuring is expected to slash $1.1 billion of funded debt, or more than 85% of its total, while transferring ownership to a new investor group.

Operations will continue, the company said, with the restructuring targeted for completion by early fourth quarter. Chief Executive Heath Sampson said the plan helps strengthen Modivcare’s balance sheet while positioning it for growth and innovation. —Jodi Xu Klein

A bankruptcy judge blocked Yale New Haven Health Services’ bid to revive a state court lawsuit to get out of its 2022 deal to acquire three Connecticut hospitals from Prospect Medical.

Meanwhile, at a hearing Tuesday, Thomas Califano, Prospect’s lawyer said the company has found other buyers for the Connecticut hospitals at a lower price than the $435 million Yale has agreed to pay. Prospect plans to reveal the identities of those interested buyers this week, Califano told Judge Stacey Jernigan at the hearing in the U.S. bankruptcy court in Dallas Wednesday.

Prospect Medical, however, is still continuing to try to hold Yale to the purchase agreement and if it fails the company plans to pursue litigation and seek financial damages equal to the difference between the price tag Yale agreed to and what the new buyers are willing to pay, he also said. Judge Jernigan said she would make a decision on Yale’s request to lift the automatic stay to allow it to resume its state court lawsuit to get out of the deal on Sept. 23. At that hearing she will also take up a separate motion filed by Prospect to assume the contract with Yale. —Soma Biswas

Guess signed an agreement to be taken private by Authentic Brands in an all-cash transaction that values the clothing retailer at roughly $1.4 billion.

Authentic Brands, a brand-management company that owns Reebok, Quiksilver and Champion, is set to own 51% of Guess intellectual property under the agreement, Guess said on Wednesday. A group of current stockholders, including Guess co-founders Maurice and Paul Marciano and Chief Executive Carlos Alberini, is slated to own the rest of the intellectual property, and current management will continue to run and own all Guess operations.

Your Amazon shopping cart could soon include a late-model used car from Hertz. The rental-car company has started selling its used vehicles directly to consumers through the online giant.

Hertz shares soared as much as 17% on Wednesday after the company said it would sell its used cars on Amazon’s automotive marketplace. For the day, they rose 6% to close at $5.51.

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