Francesca’s Chapter 11 wind-down plan was confirmed by a bankruptcy court judge on Tuesday. The amended plan outlines the retailer's success over the past few months in resolving objections from landlords and other creditors regarding its store closing sales.
The now-confirmed disclosure statement and joint plan of liquidation includes the retailer’s move to sell its IP to Altar’d State parent company Stand Out For Good for about $7 million. That sale to Stand Out For Good is inclusive of Francesca’s social media accounts, customer data, trademarks, branding assets and more.
Although 28 parties accessed the data room to review the debtors’ holdings and financial information during the marketing sale of its IP, no other qualified bids were received outside of Stand Out For Good’s offer, per the joint plan.
The operating company for Francesca’s filed for Chapter 11 bankruptcy protection in February in the U.S. Bankruptcy Court for the District of New Jersey. It marked the second time in around six years that the women’s apparel retailer filed for bankruptcy.
Francesca’s filing from earlier this year confirmed its move to close stores through a phased liquidation. The company cited constrained liquidity from prior restructuring, a shift in the competitive landscape due to e-commerce, underperforming investments in non-core brands and a disruptive 2023 data breach as some of the reasons for its latest bankruptcy move.
