As the year is nearing the end, the struggle to survive continues for retailers across the globe.
The Houston-based clothing retailer Francesca’s is no exception! The fashion retailer has said that it will be shutting down 140 stores by 30 January 2021.
The retailer announced this yesterday (16 November) in a filing with the Securities and Exchange Commission (SEC).
Francesca’s also made it clear that if it fails to raise enough capital to continue its operations and honour its commitments, it will seek reorganisation under bankruptcy protection.
The retailer has been exploring and evaluating different options to better its financial standing like cutting costs, debt refinancing and lease.
Like many other apparel retailers, Francesca’s too had been struggling since last year; however, the pandemic led to forced store closures, which finally dented its capital and inventory structure.
Also, it is imperative to note that most of the 700 stores of the retailer run in malls, and with malls too in a poor state in these tough times, the situation has only worsened for Francesca’s.
What needs to be seen now is if Francesca’s will be seeking reorganisation under bankruptcy protection any time soon.
Let’s wait and watch!
