The future is murky for a prominent fashion retailer, which has been a staple of shopping malls nationwide for more than 25 years.
Francesca’s, a boutique chain offering a wide assortment of women’s clothing and accessories, appears to be winding down operations.
A Francesca’s representative reportedly confirmed to Women’s Wear Daily, an industry publication that covers clothing and fashion, that the company is “liquidating our inventory and closing soon.”
Also in the Women’s Wear Daily report, a Francesca’s vendor alleged that Francesca’s owes the firm $250 million in unpaid invoices, adding that “there has been no correspondence whatsoever from corporate to any of the vendors.”
The liquidation is believed to include “inventory that has not been paid for,” the vendor stated.
Francesca’s, offering women’s clothing and accessories such as handbags, jewelry and sunglasses, originated in 1999 as a single boutique in Houston, Texas.
Since then, the brand has expanded to more than 450 locations in 45 states along with an e-commerce website.
“Over the past 25 years, the brand has continued to evolve to match the ever-changing fashion and lifestyle trends always meeting our customer where she’s at,” a message on the business’ website reads.
“Our mission is to deliver unique, free-spirited fashion & lifestyle products and create a space to amplify the voices of everyone seeking self-expression and we are proud to have been there for the major moments of our customers’ lives from celebrations, weddings, graduations, and more!”
Nearly a dozen Francesca’s stores operate in the region, including locations in Lehigh, Bucks, Montgomery and Monroe counties.
At two Lehigh Valley stores – one at the Lehigh Valley Mall in Whitehall Township and another at Promenade Saucon Valley in Upper Saucon Township, signs reading “storewide sale” have gone up, and shoppers can find items discounted 10% to 30% off their original prices (limited exceptions apply).
A storewide sale is underway at Francesca’s at Promenade Saucon Valley in Upper Saucon Township.
At the Lehigh Valley Mall store, additional signs reading “all sales are final,” “nothing held back!” and “everything must go!” are also displayed.
A Francesca’s spokesperson did not return a message seeking comment, and the company has yet to publicly confirm reports of an impending closure.
However, workers at both Lehigh Valley stores told 69 News that they heard their respective locations could possibly close within the next two to three months.
A manager at the Whitehall location also stated that there is a possibility that some locations, including the Lehigh Valley Mall store, could remain open if a new business deal occurs in the coming weeks.
“There’s still hope,” the manager added.
Francesca’s Holdings Corporation 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.