by Francescathe women’s clothing and footwear retailer, filed for bankruptcy with the intention of emerging through a sale process.
The company entered bankruptcy filing in Delaware late Thursday with a letter of intent with investment firm TerraMar Capital, for TerraMar or an affiliate to be its bidder in a sell-as-you-go process. the case is progressing, according to the retailer. The company also added that a “number of other parties” were also doing due diligence on the sale prospect.
No more WWD
In a statement, the retailer said it plans to execute a sale of its “core retail sites as well as its promising digital expansion and new brand launches.” The company, which last month said it plans to close 140 sites by January 30, goes bankrupt with 558 locations. As the retailer struggles to renegotiate rent during the bankruptcy process, it could close more stores, he said.
by Francesca also commenced proceedings with an agreement from its lender Tiger Finance LLC for a $25 million debtor-in-possession loan that the court is expected to consider for customary approval at an initial hearing in the case.
“Implementing this process allows Francesca’s to meet our lease obligations and seek a new investor who can see Francesca’s into the future,” said Andrew Clarke, CEO of the retailer.
“The funding provided by Tiger will enable Francesca’s to pursue a sales process that will allow us to continue to focus on our omnichannel strategies, optimize our store base, expand our customer base with brand extensions and generate sustainable and profitable growth,” he said.
“We are excited about the potential partnership with TerraMar and we share their faith in the future of the company. Additionally, a number of other parties are currently engaged in the due diligence process to own a new and revitalized Francesca’s,” Clarke said.
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