“The COVID-19 pandemic has and continues to result in an overall disruption in the Company’s operations and supply chain,” the report reads. “As a result, the Company’s revenues, results of operations and cash flows continue to be materially adversely impacted which raises substantial doubt about the Company’s ability to continue as going concern.”
The Houston-based retailer has also begun exploring other ways to improve its liquidity and financial position, including further lease concessions and deferrals, reductions of operating and capital expenditures, raising additional capital including a refinancing of the company’s debt, and restructuring its debt and liabilities through a private restructuring, according to the investor report.
Francesca’s, which offers a curated mix of women’s clothing, baubles, accessories and gifts, started in 1999 with its first boutique in Houston. The retailer now has over 700 boutiques in 48 states across the country.