IN BRIEF: Francesca's files liquidation plan following January sale

(Reuters) - Women’s apparel retailer Francesca’s has filed its proposed liquidation plan following its sale to TerraMar Capital LLC and Tiger Capital Group LLC in January.

The plan, filed on Thursday, will wind down the business and distribute proceeds of the sale to creditors. Francesca’s, represented by O’Melveny & Myers, filed for bankruptcy in Delaware in December with $13.5 million in long-term debt, one of dozens of retailers that saw sales collapse amid the COVID-19 pandemic.

The plan calls for lenders to be paid back in full. General unsecured creditors will receive any value remaining after the lenders are paid in full.

TerraMar and Tiger acquired the company’s assets in January in exchange for $18 million in cash, a $1.25 million promissory note and the assumption of about $7.7 million in liabilities.

A remote hearing on the plan is set for May 26 before U.S. Bankruptcy Judge Brendan Shannon in Wilmington, Delaware.

After closing 140 stores, Francesca’s, which is based in Houston, filed for bankruptcy with 558 remaining locations across 45 states. Shortly after filing, Francesca's said it would close another 97 stores. Tiger Capital provided a $25 million bankruptcy loan to fund operations during the case.

The case is In re Francesca's Holdings Corporation, U.S. Bankruptcy Court, District of Delaware, No. 20-13076.

For Francesca's: Maria DiConza, Joseph Zujkowski and Diana Perez of O'Melveny & Myers and Mark Collins, Michael Merchant and Jason Madron of Richards Layton & Finger

For TerraMar: Marc Carmel and Michael Kaczka of McDonald Hopkins and Andrew Magaziner of Young Conaway Stargatt & Taylor

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Maria Chutchian reports on corporate bankruptcies and restructurings. She can be reached at maria.chutchian@thomsonreuters.com.