Francesca’s new owner to keep some stores open

Francesca’s has won court approval to sell itself to an affiliate of TerraMar Capital and Tiger Capital.

The approval came after the apparel and accessories retailer, which filed for bankruptcy  in December, announced that TerraMar and Tiger were selected as the winner bidder under an enhanced asset purchase. TerraMar has committed to keeping at least 275 Francesca’s locations open. (As of January 19, Francesca's operated approximately 551 stores nationwide.)

“We are extremely pleased with the interest in Francesca’s during a robust auction process and that TerraMar emerged as the winning bidder,” said CEO Andrew Clarke, who will maintain his role in the company. “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 2021, at which time Francesca’s will exit bankruptcy.

“We look forward to partnering with Andrew and the Francesca’s team as we begin a new era for Francesca’s,” said Joshua Phillips, managing partner of TerraMar Capital. “The company is well positioned to continue providing great products for its customers in an omnichannel approach. We are very focused on francesca’s being a good partner for suppliers, landlords and other key stakeholders going forward.”