Francesca’s files for bankruptcy; closing all stores
After 25 years of operations, Francesca’s is going out of business.
In a not unexpected move, the Houston-based young women’s clothing and accessories chain filed for Chapter 11 bankruptcy protection with plans to close its stores and liquidate. The filing, in the U.S. Bankruptcy Court for the District of New Jersey, comes after reports in January that Francesca’s was preparing to shut down operations.
Tiger Group, SB360 Capital Partners and GA Group, acting as advisors to Francesca's, have commenced court-approved store closing sales across the retailer’s entire store fleet as part of the Chapter 11 process. The chain operates approximately 400 stores across 45 states.
In its filing, Francesca's reported $10 million to $50 million in assets and $50 million to $100 million in liabilities. The retailer cited several factors leading to its filing, including a data breach on Jan. 31, 2023 that impacted sales, a disruptive e-commerce upgrade, the underperformance of non-core brands and spending on marketing and promotion efforts to drive sales, and the failure of an anticipated capital infusion in December 2025.
In other factors, early this year, two major suppliers lost their funding, making them unable to deliver necessary product. In January, the company received a notice of default from its lenders.
Francesca's has filed customary motions seeking authority to support ongoing operations, including continuing employee wages and benefits and honoring post-petition obligations to vendors and partners.
"This process provides a structured path to pursue the best outcome for all stakeholders," said Curt Kroll, CFO. "We remain focused on operating responsibly and supporting our teams, partners, and guests throughout this process."
Francesca’s, which was founded in 1999, previously filed for bankruptcy in 2020 and was sold in January 2021 to Francesca’s Acquisition LLC, an affiliate of private equity firm TerraMar Capital, for $18 million.
Tiger Capital and SB360 Capital Group were also part of the group that acquired Francesca’s out of bankruptcy in 2021.
