The US-based clothing retailer Francesca’s, which filed for Chapter 11 bankruptcy in November 2020, has got the green signal from the court of a deal to sell itself.
Following court approval, the fashion retailer will, reportedly, be sold to TerraMar Capital and Tiger Capital. Notably, the retailer was acquired during the recently concluded auction process.
As per the statement released to media, Francesca’s has said that TerraMar has expressed its commitment to keep around 275 stores of the retailer open.
The transaction, which includes US $ 18 million in cash for Francesca’s, is expected to conclude by the end of this month.
In documents filed at the US court last week, the retailer said that it plans to shut down 97 more stores.
Earlier, Francesca’s had announced to close 140 of its 700 stores.
According to the court documents, unless any other firm outbids TerraMar Capital, Francesca’s will be sold to the private equity firm for US $ 23 million.
Nearly half of Francesca’s stores are mall-based and the entire 2020 has been a disaster for mall owners with many of its tenants either failing to pay rent or shutting down forever.
Stay connected for more details!
Bharat Tex Special Report 2026 
