Franchise Services bid procedures approved; auction set for Sept. 26

By Caroline Salls

Pittsburgh, Aug. 23 – Franchise Services of North America Inc. received court approval of the bid procedures for the proposed sale of 100% of the stock of U-Save Holdings, Inc., according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Mississippi.

As previously reported, the stalking horse bidder is Trace Residential Properties LLC, an affiliate of former Franchise Services chairman and a shareholder and director of the company, as well as an officer in U-Save Holdings.

Trace Residential’s bid includes a $1 million cash component and a price for unrestricted cash of U-Save Auto Rental of America, Inc.

The company said no bid protections are payable under its current stalking horse agreement. However, if Franchise Services secures an alternate stalking horse bid before Aug. 31, it may offer that bidder a 3% break-up fee and an up to $50,000 expense reimbursement.

Minimum overbids must exceed the stalking horse bid by at least $50,000, and subsequent bids must be made in minimum increments of $25,000.

Competing bids are due by 5 p.m. ET on Sept. 20.

An auction will be held on Sept. 26, if necessary, and the sale hearing is scheduled for Sept. 27.

Ridgeland, Miss.-based Franchise Services is the holding company for operating entities that own several car rental brands whose associated independent operators have locations across the United States. The company filed bankruptcy on June 26 under Chapter 11 case number 17-02316.

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