Pic: Francesca's
Francesca’s Holdings Corporation, a US specialty retailer offering women's apparel, shoes and accessories, recently voluntarily filed for Chapter 11 bankruptcy relief in the district of Delaware. It wants to use the proceedings to implement a sale process focused on its core retail locations and its digital expansion and new brand launches.
It has received a commitment from its existing lender, Tiger Finance, for a $25 million debtor-in-possession (DIP) financing facility, the company said in a press release.
The company will file a motion seeking authorisation to pursue an auction and sale process and expects to move through the sale process as expeditiously as possible.
It has entered into a letter of intent with TerraMar Capital, an investment firm that provides debt and equity capital to middle-market businesses, for TerraMar or an affiliate to become the stalking horse bidder for the auction and sale process.
The company previously announced plans to close 140 boutiques and plans to attempt to renegotiate a number of leases during this process, which may include closing additional boutiques. As of today, 558 boutiques remain open for business.
FTI Consulting and FTI Capital Advisors have been retained as the company’s financial advisor and investment banker, subject to approval of the court, to manage the sale and auction process. Bids expected to be submitted by January 13, 2021 and the auction is targeted to commence no later than January 15. The sale is expected to be concluded by January 20.
Fibre2Fashion News Desk (DS)
Francesca's Holdings Corporation, a US specialty retailer offering women's apparel, shoes and accessories, recently voluntarily filed for Chapter 11 bankruptcy relief in the district of Delaware. It wants to use the proceedings to implement a sale process focused on its core retail locations and its digital expansion and new brand launches.