Francesca’s, a women’s boutique chain based in Houston, is reportedly preparing to close its operations. This development could affect hundreds of shopping centers across the United States that currently lease space to the retailer.
Women’s Wear Daily reported that Francesca’s is “liquidating our inventory and closing soon,” citing information from a company customer service representative as well as confirmations from vendors, merchants, and former buyers. One vendor claimed to be owed $250 million in unpaid invoices, according to the Houston Business Journal.
The company’s website is advertising a “warehouse sale” with clearance items priced at $15 or less. However, there is no direct mention of liquidation or store closures on the site. Francesca’s operates more than 450 boutiques in 45 states and employs over 3,400 people. In Houston alone, there are 16 locations situated within malls and open-air shopping centers.
Founded in Houston in 1999, Francesca’s built its brand through small-format boutiques offering fast-turn merchandise tailored for suburban mall shoppers. The retailer faced challenges common among specialty apparel chains as foot traffic declined and online shopping grew. Prior to the pandemic, Francesca’s closed stores and cut jobs while attempting various strategies to improve performance.
In December 2020, the company filed for Chapter 11 bankruptcy protection but emerged two months later after being acquired by Francesca’s Acquisition—an affiliate of TerraMar Capital—alongside Tiger Capital Group and SB360 Capital Group for $18 million. Under new ownership, efforts were made to reposition the brand by launching Franki by Francesca’s—a concept aimed at tweens—and acquiring wardrobe basics brand Richer Poorer in 2023.
“Liquidating our inventory and closing soon,” said a customer service representative for Francesca’s as reported by Women’s Wear Daily.
One vendor told WWD it is allegedly owed $250 million in unpaid invoices.
