WHITEHALL TWP., Pa. – Following its second bankruptcy filing in roughly six years, a prominent fashion retailer is in its final weeks.
The last Lehigh Valley location of Francesca’s, a boutique chain offering a wide assortment of women’s clothing and accessories, is set to close on March 28 at the Lehigh Valley Mall in Whitehall Township, an employee told 69 News.
The upcoming shuttering will follow the closure of another Lehigh Valley Francesca’s location at Promenade Saucon Valley in Upper Saucon Township in February.
The Whitehall store is hosting a storewide sale, with all items discounted 40% to 70% off their original prices (limited exceptions apply).
Displayed signs read “nothing held back!” and “everything must go!”
Discounts have increased over the past couple of months, with the store having offered items at 10% to 30% off their original prices in January.
Francesca’s is hosting going-out-of-business sales at all of its more than 400 stores after filing for Chapter 11 bankruptcy protection in February for the second time in approximately six years.
The filing is intended to facilitate a court-supervised process to maximize value for stakeholders.
Tiger Group, SB360 Capital Partners and GA Group, acting as advisors to francesca’s, in February commenced the court-approved store closing sales across the company’s entire store fleet as part of the Chapter 11 process.
“Shoppers will find discounts of 25 to 40 percent off across all product categories, and new merchandise will continue to arrive at stores,” said Michael McGrail of Tiger Group in a written statement.
“It’s an opportunity to add to or accessorize your wardrobe, find unique gifts, or just go on a treasure hunt for extraordinary deals.”
A Francesca’s store closed earlier this year at Promenade Saucon Valley in Upper Saucon Township.
Shoppers can browse merchandise that includes sweaters and cardigans, rompers and jumpsuits, blouses, skirts, dresses, loungewear, intimates, denim jackets, rings, earrings, necklaces, bracelets, gifts and more.
“This process provides a structured path to pursue the best outcome for all stakeholders,” said Curt Kroll, fracesca’s chief financial officer, in a written statement. “We remain focused on operating responsibly and supporting our teams, partners, and guests throughout this process.”
According to a Feb. 9 Retail Dive article, constrained liquidity from the company’s previous restructuring, a shift in the competitive landscape due to e-commerce, underperforming investments in non-core brands and a disruptive 2023 data breach were among the reasons Kroll attributed to this latest bankruptcy.
Francesca’s, offering women’s clothing and accessories such as handbags, jewelry and sunglasses, originated in 1999 as a single boutique in Houston, Texas.
Over the years, the brand expanded to more than 450 locations in 45 states along with an e-commerce website.
Francesca’s online store has already ceased operations, and all sales in the business’ remaining physical boutiques are final. Store fixtures are also for sale.
Francesca’s Holdings Corporation previously filed for Chapter 11 bankruptcy protection in December 2020 amid challenges exacerbated by the COVID-19 pandemic.
At the time, the company had 558 stores and announced its plans to “attempt to renegotiate a number of leases during this process, which may include closing additional boutiques.”
The company also announced it was obtaining $25 million in financing from its existing lender, Tiger Finance, LLC, to facilitate the sales process.
“Implementing this process allows francesca’s to address our lease obligations and seek a new investor that can see francesca’s into the future,” Francesca’s CEO Andrew Clarke said in a written statement in December 2020.
“The financing provided by Tiger will enable francesca’s to pursue a sale process that will allow us continue to focus on our omni-channel strategies, optimize our boutique fleet, broaden our customer reach with brand extensions and drive sustainable, profitable growth.”
In January 2021, Francesca’s Holdings Corporation announced the conclusion of a bankruptcy auction, with Francesca’s Acquisition LLC, an affiliate of TerraMar Capital LLC, and Tiger Capital LLC being selected as the winning bidder under an enhanced asset purchase agreement.