Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, June 21, 2019

Article Excerpt

FRANCESCA’S HOLDINGS CORP., $0.42, symbol FRAN on Nasdaq, is a Houston-based specialty retailer catering to fashion-conscious women between 18 and 35. It has 722 stores in 47 U.S. states. On January 31, 2019, Francesca’s announced that CEO Steve Lawrence had resigned, effective February 1. He was 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. On June 13, 2019, Francesca’s announced that it was closing at least 30 stores this year, as part of the company’s ongoing turnaround of its business. In the first quarter of this year, it closed eight of the 30 stores. It also expects to cut $15 million in annual costs by obtaining rent reductions from landlords, as well…