TerraMar Capital
TerraMar Capital LLC is a private investment firm that specializes in providing flexible, tailored capital solutions to middle-market companies. The company has a significant track record of partnering with businesses to facilitate growth, acquisitions, recapitalizations, and management-led buyouts.
In a notable move, TerraMar Capital LLC completed the acquisition of assets from Francesca's Holdings Corp. This acquisition took place after Francesca's Holdings Corp entered into a letter of intent on December 3, 2020, with TerraMar Capital LLC emerging as the stalking horse bidder in the auction and sale process. The transaction was approved by the Bankruptcy Court on January 22, 2021, and the acquisition was finalized on January 30, 2021.
The deal involved TerraMar Capital LLC and Tiger Capital Group, LLC acquiring the assets for $18 million in cash, subject to certain adjustments, and the issuance of a promissory note in the principal amount of $1.25 million. The agreement also included the reimbursement of certain financing-related fees and the assumption of various contracts, leases, and other liabilities. A portion of the purchase price was placed in escrow to cover potential adjustments and cure costs associated with the assigned contracts and leases.
As part of the acquisition, TerraMar committed to keeping at least 275 Francesca's stores open. The Francesca's brand, known for its boutique fashion offerings, was bought by Francesca's Acquisition LLC, an affiliate of TerraMar Capital LLC, and continues to operate outside of the chapter 11 bankruptcy process. The brand's name and website were also part of the purchase, and they are no longer affiliated with the public company Francesca's Holdings Corporation, which traded under the symbol "FRAN" and had filed for protection under chapter 11 of the U.S. Bankruptcy Code.
This strategic acquisition by TerraMar Capital LLC reflects their investment philosophy and expertise in navigating complex transactions, particularly those involving distressed assets. It also underscores their commitment to preserving and enhancing the value of the brands they invest in, ensuring continuity for customers and stakeholders alike. TerraMar Capital LLC operates with a long-term perspective, focusing on creating sustainable value through strategic growth and operational improvements in the companies they partner with.