Francesca’s Holdings Corp. is planning to close more stores on top of the 137 locations it closed prior to filing for bankruptcy.
The apparel and accessories retailer, which filed for Chapter 11 on Dec. 4, revealed in court documents that it plans to shutter an additional 97 locations that are “currently underperforming relative to lease costs.” As of December 1, 2020, Francesca’s was operating 558 stores nationwide, according to the documents.
Francesca’s currently has a takeover offer from TerraMar Capital, which is serving as the stalking horse bidder in its sale process. Other potential bidders are studying the company. Bids are expected to be submitted by Jan. 13, with the sale intended to be concluded by January 20.
Francesca’s existing lender, Tiger Finance, is providing $25 million in debtor-in-possession financing.