The company intends to sell its business and investment firm TerraMar Capital LLC has agreed to become the stalking-horse bidder at the bankruptcy auction.
The company previously announced plans to close 140 boutiques and plans to attempt to renegotiate a number of leases. The company now intends to use these proceedings to implement a sales process focused on their core retail locations as well as its promising digital experience and new brand launches.
Francesca’s has received a commitment from its existing lender, Tiger Finance LLC for a $25M debtor-in-possession financing facility. The new facility, which is subject to court approval, will enable the company to continue to operate the business and meet its financial obligations.
“Implementing this process allows Francesca’s to address our lease obligations and seek a new investor that can see Francesca’s into the future. The financing provided by Tiger will enable Francesca’s to pursure a sale process that will allow us to continue to focus on our omni-channel strategies, optimise our boutique fleet, broaden our customer reach with brand extensions and drive sustainable, profitable growth,” commented Andrew Clarke, Chief Executive Officer.
