American clothing chain Francesca’s Holdings Corp. is the latest to join the fashion retailers who have gone bankrupt!
The Houston-based women’s apparel retailer has filed for Chapter 11 bankruptcy in US Bankruptcy Court in Delaware.
While confirming the same in a statement released by Francesca’s, it was also stated that TerraMar Capital LLC or an affiliate will be the stalking-horse bidder at the auction supervised by the court.
20 January has been set as a target for completing the sale.
Meanwhile there are reports that Tiger Finance LLC, the current lender of Francesca’s, has given its commitment to offer a bankruptcy loan of US $ 25 million.
Further on the same, Andrew Clarke, CEO, Francesca’s said that the process will not only help address lease obligations, but also help find a new investor.
As it’s been the case with many fashion retailers, Francesca’s too has been struggling much before the pandemic started. However 2020 has been worse!
Temporary closure of stores followed by prolonged lockdown hit the retailer’s 2020 Q1 sales so badly that it never really recovered from the losses. And last month, the retailer also said that it would close 140 stores by January 2021.
We will keep you updated about all the latest at Francesca’s!