Francesca’s Completes Section 363 Asset Sale to Francesca’s Acquisition, SB360 Capital Partners, And Tiger Capital Group

HOUSTON, Texas – February 1, 2021 – Francesca’s Holdings Corporation (the “Company”) and Francesca’s Acquisition LLC, an affiliate of TerraMar Capital LLC (“TerraMar”), today announced, after a fulsome auction and sale process under Section 363 of the United States Bankruptcy Code, that it completed the sale of substantially all of francesca’s® assets, including all inventory and the francesca’s® brand, to Francesca’s Acquisition LLC, SB360 Capital Partners (“SB360”), and Tiger Capital Group LLC (“Tiger”).

francesca’s® will continue to serve its customers through at least 275 boutiques, its e-commerce channels and the Company’s existing Houston, TX headquarters. The new francesca’s® business has firm financial footing, which includes a new $25 million asset based revolving credit facility provided by affiliates of Tiger and SB360, Tiger Finance, LLC and Second Avenue Capital Partners.  The bankruptcy estates will be wound down through a liquidating plan.

“Today marks a new day for francesca’s®. We are excited to complete the sale of francesca’s® assets to our new ownership group who are committed to our business, our people and our brand. With the support of TerraMar, Tiger and SB360, we look forward to exploring new brand avenues, expanding our ecommerce channels, and providing our customers with the latest fashion options and treasure hunt experiences they know and love,” said Andrew Clarke, francesca’s® Chief Executive Officer.

“The closing of this transaction begins a new era for francesca’s®. The Company is well positioned to continue to provide great products for its customers but also expand new channels for growth.” said Joshua Phillips, Managing Partner of TerraMar.

“It’s been a tough year for retailers, but francesca’s® represents an opportunity for us to tell a different story,” said Aaron Miller, Executive Vice President of SB360 Capital Partners. “As retailers ourselves, the preservation of stores and jobs is of paramount importance, and this transaction does just that. SB360’s participation in this new ownership group will support the next phase in francesca’s® pathway forward.”

Andy Babcock, Managing Director of Tiger said, “We are excited to be partnering with TerraMar and Mr. Clarke’s leadership team to invest in the future growth of francesca’s®. We see tremendous opportunity to take what is already a high-quality quality brand and, by bringing the necessary financial resources, create an even more sustainable business.”

francesca’s® was represented in the sale by O’Melveny & Myers LLP and Richards Layton & Finger, P.A. as bankruptcy counsel and FTI Consulting, Inc. and FTI Capital Advisors LLC as the Company’s financial advisor and investment banker. TerraMar Capital, LLC and Francesca’s Acquisition, LLC was represented by McDonald Hopkins LLC and Young Conaway Stargatt & Taylor, LLP as counsel. Tiger Finance and Tiger Capital Group, LLC were represented by Greenberg Traurig, LLP.