Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, February 8, 2019

Article Excerpt

FRANCESCA’S HOLDINGS CORP., $0.86, symbol FRAN on Nasdaq, is a Houston-based specialty retailer catering to fashion-conscious women between 18 and 35. It has 738 stores in 47 U.S. states. On January 31, 2019, Francesca’s announced that CEO Steve Lawrence had resigned, effective February 1. He will be replaced on an interim basis by Michael Prendergast. That industry veteran was a senior director at Alvarez & Marsal, a firm that specializes in helping companies turn around their operations. At the same time Francesca’s announced that it had hired financial advisers to help it explore all strategic alternatives available. This includes the possibility of the company’s outright sale. In the three months ended November 3, 2018, overall revenue declined 9.8%, to $95.4 million from $105.8 million a year earlier. Same-store sales fell 14%. That’s on top of the 18% decline a year ago. In the latest quarter, excluding one-time items, Francesca’s lost $6.0 million, or $0.17 a share. That’s down considerably from the $239,000, or $0.01,…