Houston-based women’s apparel chain Francesca’s Holdings Corp. may file for bankruptcy this week. This has been confirmed by sources close to the matter though there’s no official confirmation from the retailer.
If at all Francesca’s files for bankruptcy this week, it would join the list of almost three dozen retailers who filed for Chapter 11 this year.
While most of the fashion retailers were victims of the deadly pandemic, for many others like Francesca’s, problems started much before that.
Back in January 2019, immediately after posting another quarter of poor sales, the company saw its CEO Steve Lawrence resign. It also announced then that the closure of stores was imminent.
However, the pandemic seems to have hit Francesca’s badly. In September 2020, Francesca’s said that it has hired advisers to explore other alternatives that also include filing for Chapter 11.
It was only last week that the apparel retailer had announced that it would shut down around 140 stores by the end of January 2021 and file for bankruptcy if it fails to raise enough capital.
And now there’s news that the filing could be done as early as this week!
The retailer has also said that it may incur total impairment cost of around US $ 29 million to US $ 33 million owing to closure of stores.
We will keep you updated of all latest developments!