An affiliate of TerraMar Capital LLC and Tiger Capital LLC was selected as the winning bidder during a sales process among multiple bids and an auction under an enhanced asset purchase agreement, francesca’s announced in a Jan. 19 news release.
“We are extremely pleased with the interest in francesca’s during a robust auction process and that TerraMar emerged as the winning bidder,” said Andrew Clarke, who will remain francesca’s chief executive officer in the buyout. “TerraMar shares our belief in the future of the business, has proven experience in supporting companies like ours through the next phase of growth and is committed to a revitalized francesca’s.”
The transaction is expected to close by the end of January, subject to approval of the U.S. Bankruptcy Court for the District of Delaware; that decision is set to be issued Jan. 21 at 11 a.m. Eastern Time. Upon completion of the sale, the francesca’s business will exit from its Chapter 11 Bankruptcy proceeding.
The buyout follows the boutique clothing store’s announcement Dec. 3 that it was filing for Chapter 11 bankruptcy and to implement a sale process focused on Francesca’s core retail locations, digital expansion and new brand launches.
Francesca’s was purchased for $18 million by TerraMar, according to court documents, and the business has committed to continued operations for at least 275 francesca’s boutiques.
“We look forward to partnering with Andrew and the francesca’s team as we begin a new era for francesca’s,” TerraMar Capital Managing Partner Joshua Phillips said. “The Company is well positioned to continue providing great products for its customers in an omni-channel approach.” www.francescas.com