Francesca’s Beats US Objection Over Asset Sale Bid Protections

Bankrupt women’s specialty retailer Francesca’s can enter into a $7 million auction floor price agreement with Stand Out For Good Inc. over the objection of the Justice Department’s bankruptcy monitoring unit, a New Jersey bankruptcy judge ruled.

Stand Out, the owner of faith-based clothing retailer Altar’d State, won bid protections to serve as stalking horse bidder ahead of an auction for the intellectual property assets of Francesca’s Acquisition LLC, Judge Mark Edward Hall of the US Bankruptcy Court for the District of New Jersey ruled Wednesday.

Francesca’s has shown that a $210,000 break-up fee and up to $150,000 in due ...