Francesca’s acquires wholesale, DTC apparel brand Richer Poorer
Francesca’s is expanding its portfolio as it looks to expand into a “multi-branded” company.
Francesca’s Acquisition LLC, which operates stores under the Francesca’s and Franki by Francesca’s banners, has acquired Richer Poorer, an LA-based women’s and men’s wholesale and direct-to-consumer brand of wardrobe essentials. Financial terms of the asset purchase, which will bring Richer Poorer under the Francesca’s umbrella as a wholly owned subsidiary, were not disclosed.
Founded in 2010, Richer Poorer has a stated purpose of “making the world a more comfortable place by delivering thoughtful, elevated wardrobe essentials for modern life, made with the highest-quality, sustainable materials at attainable price points.” The brand’s focused categories include sweats, tees and tanks, intimates, dresses, and loungewear.
The acquisition bolsters Francesca’s channel reach, including leveraging Richer Poorer’s robust wholesale network, and introduces new product categories to Francesca’s portfolio mix, allowing it to grow its share of wallet among the Gen Z and millennial women’s segments.
The acquisition comes after Francesca’s declared bankruptcy in 2020 and was taken private in 2021 by private equity firm TerraMar Capital. The brand has regained momentum under its new owners, with a focus on growing its e-commerce channel and customer experience, scaling its tween brand Franki by Francesca’s and expanding its physical footprint. At the beginning of 2023, it launched a re-sale partnership with ThredUp.
The company said it is now “shifting gears” to focus on targeted acquisitions and the expansion into a ‘multi-branded company.”
“I am delighted to welcome the Richer Poorer team into our expanding portfolio and recognize their success in growing Richer Poorer from start up into a Gen Z-relevant, sustainable brand, which is a great
addition to our “free to be you” company culture,” said Andrew Clarke, CEO of Francesca’s Acquisition. “Creating this new cooperative of synergistic brands allows us to benefit from a diverse bench strength of expertise, while setting up the whole for greater reach into our target markets. This will deliver increased operational efficiencies, accelerate our omnichannel capabilities and open new revenue streams.”
Richer Poorer will continue its existing efforts in wholesale and DTC channels this year, with a full re-launch in 2024. Company CEO and co-founder will continue to lead the brand in an expanded role as president of Richer Poorer, Franki and Wholesale.
“I am thrilled to see Richer Poorer and our team combine forces with two successful, female-focused brands, francesca’s and franki by francesca’s” said Pawling. “We share the same entrepreneurial spirit and couldn’t be more optimistic at the growth opportunity ahead for all three brands through this expansion effort.”
The transaction was completed in partnership with Tiger Capital and financed by Bank of America.
"Completing this acquisition is a meaningful step in the value creation plan for francesca’s that was established in 2021 when we acquired the business,” commented Joshua Phillips, managing partner of TerraMar Capital, LLC. “We look forward to continuing to evaluate other potential acquisitions in the space and working with Andrew and the francesca’s management team to continue the work towards building the francesca’s platform to recognize its full potential.”
Francesca's operates approximately 454 boutiques in 45 states and also serves its customers online.