Francesca’s Files for Bankruptcy With Pandemic Toll Growing (1)

Boutique women’s clothing chain Francesca’s Holdings Corp. filed for bankruptcy after the coronavirus pandemic accelerated its sales drop.

The Houston-based company on Thursday sought Chapter 11 protection in U.S. Bankruptcy Court in Delaware with plans to sell the business, according to a statement. TerraMar Capital LLC or an affiliate has agreed to become the stalking-horse bidder in a bankruptcy auction, and Francesca’s existing lender, Tiger Finance LLC, has committed to provide $25 million of debtor-in-possession financing, the retailer said.

“Implementing this process allows Francesca’s to address our lease obligations and seek a new investor that can see Francesca’s into ...