The retailer has announced that it plans to close around 140 stores by the end of January 2021.
Francesca’s currently operates around 700 stores across the US and the retailer has said that it expects to incur charges of anywhere between $29M and $33M for the 39 weeks ending October 31.
As a result of this, Francesca’s is evaluating a number of different options that could help improve its financial situation. These include further lease concessions, further reductions of operations and capital expenditures and restructuring of its debt and liabilities through a private restructuring or a restructuring under the protection of bankruptcy laws.
The company has also said that a bankruptcy restructuring is an option they’re currently considering, stating: “If the company is unable to raise sufficient additional capital to continue to fund operations and pay its obligations, the company will likely need to seek a restructuring under the protection of applicable bankruptcy laws.”
