Houston-based specialty apparel retailer Francesca's Holding Corp. is one step closer to selling its business to a private investor, the Houston Business Journal reported. The U.S. Bankruptcy Court for the District of Delaware has approved the company's auction process, Francesca's announced Jan. 8. Bids are due by 4 p.m. Eastern Time on Jan. 13, and the auction is set for 10 a.m. Eastern Time on Jan. 15. The auction will only be held if Francesca's receives one or more qualified bids. If not, Francesca's will seek the bankruptcy court's approval of its stalking-horse asset purchase agreement. Francesca's also announced Jan. 8 that it formalized the stalking-horse agreement with an affiliate of Los Angeles-based TerraMar Capital LLC and with New York-based Tiger Capital Group LLC. The buyers have agreed to purchase substantially all of the assets of Francesca's and its subsidiaries for approximately $17 million in cash, subject to certain adjustments, plus the assumption of substantial liabilities. Francesca's filed for chapter 11 protection on Dec. 3 with plans to sell itself. At the time, Francesca's and TerraMar had signed a letter of intent regarding a stalking-horse bidder agreement, and the retailer said that it wanted to hold an auction as expeditiously as possible.
