Dive Brief:
- Altar’d State’s parent company, Stand Out For Good, Inc., is the stalking horse bidder in Francesca’s latest Chapter 11 bankruptcy case, per a court filing on Monday. The deal is subject to bankruptcy court approval, and alternative bids are allowed to be submitted.
- The proposed stalking horse sale would include a cash purchase price of $7 million for Francesca’s IP assets. Stand Out For Good did not immediately respond to a request for comment from Retail Dive.
- The proposed deal would also include a break-up fee of $210,000 and an expense reimbursement of up to $150,000 paid to Stand Out For Good. However, such reimbursement is being objected to by the U.S. trustee for the bankruptcy case, along with other aspects of the proposed bidding procedures, per a separate filing on Tuesday.
Dive Insight:
Stand Out For Good was not the only interested buyer in Francesca’s IP assets.
The distressed fashion retailer hired Hilco on Jan. 19 to solicit interest in the company’s assets. Based on a set of discussions with over 20 potential purchasers, four interested buyers emerged with offers to serve as the stalking horse bidder, per the Monday court filing.
Stand Out For Good has described itself as “a purpose-based, inspiring lifestyle and fashion family of brands,” which contains the Altar’d State women’s fashion brand. Altar’d State operated around 120 stores as of September 2023. It also operates other banners, including the bridal-focused Vow'd, a kids apparel brand Tullabee and the activewear brand AS Revival.
Altar’d State’s founders created the company in 2009 with an interest in having a “faith-based approach” to retail. The parent company donates some of its net proceeds to nonprofits.
The operating company for Francesca’s — which is owned by the holding company MAS Acquisition LLC — filed for Chapter 11 bankruptcy protection on Thursday in the U.S. Bankruptcy Court for the District of New Jersey. The filing followed news in January that Francesca’s stores are closing through a phased liquidation process after it failed to secure alternative financing.
It’s the second time in around six years that the retailer has filed for bankruptcy.
