The Francesca’s boutique clothing store has announced that it will file for Chapter 11 bankruptcy, the company announced in a Dec. 3 news release.
The boutique clothing store chain will use the filing to implement a sale process “as expeditiously as possible” focused on Francesca’s core retail locations, its digital expansion and new brand launches, according to the news release.
Francesca’s previously announced plans to close 140 boutiques and plans to attempt to renegotiate a number of leases during this process, which may include closing additional boutiques. As of Dec. 3, 558 boutiques remain open for business.
The chain has received a commitment from its current lender, Tiger Finance LLC, for a $25 million debtor-in-possession financing facility, which would allow Francesca’s to continue to operate the business and meet its financial obligations, which includes the timely payment of employee wages and benefits, continued provision of customer orders and shipments, and payment of other obligations.
