Francesca's acquires Los Angeles brand Richer Poorer
Specialty fashion retailer, Francesca's announced on Tuesday the acquisition of California-based wardrobe essentials brand, Richer Poorer.
The Houston-based company, which operates the Francesca's and Franki by Francesca's stores, said the acquisition will place Richer Poorer under the Francesca's Acquisition LLC umbrella as a wholly owned subsidiary. Financial terms of the deal were not disclosed.
The Richer Poorer buyout signals a shift in gears for Francesca's, as it focuses on targeted acquisitions and expansion into a multi-branded company moving forward, after being taken private in 2021 by TerraMar Capital LLC.
The Richer Poorer takeover also looks to bolster Francesca's channel reach, including leveraging its robust wholesale network, and introduces new product categories to the brand's portfolio mix, with a focus on increasing market share among the Gen Z and Millennial women's segments, according to a press release.
"I am delighted to welcome the Richer Poorer team into our expanding portfolio and recognize their success in growing Richer Poorer from start up into a Gen Z-relevant, sustainable brand, which is a great addition to our "free to be you" company culture," said Andrew Clarke, CEO of Francesca's Acquisition LLC.
"Creating this new cooperative of synergistic brands allows us to benefit from a diverse bench strength of expertise, while setting up the whole for greater reach into our target markets. This will deliver increased operational efficiencies, accelerate our omni-channel capabilities and open new revenue streams. We are especially grateful to our vendor partners, landlords and lenders who continue to proactively support our company and the initiatives we are pursuing as a management team."
Founded in Los Angeles, Richer Poorer is basics fashion brand retailing sweats, tees and tanks, intimates, dresses and loungewear and styles seen on celebrities like Miley Cyrus, Suki Waterhouse, Jessica Alba and more.
Following the acquisition, the brand will continue its existing efforts in wholesale and DTC channels this year, with a full re-launch in 2024. Iva Pawling, the CEO and co-founder, will continue to lead the brand in her new expanded role as president of Richer Poorer, Franki, and wholesale.
"I am thrilled to see Richer Poorer and our team combine forces with two successful, female-focused brands, Francesca's and Franki by Francesca's," said Pawling. "We share the same entrepreneurial spirit and couldn't be more optimistic at the growth opportunity ahead for all three brands through this expansion effort."
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