Attire and add-ons retailer Francesca’s (FRAN) announced Monday that 140 stores will be closing by Jan. 31, 2021. The organization also warned that submitting for personal bankruptcy was not off the table as it continues to be hampered by the COVID-19 pandemic.
In a submitting with the Securities and Trade Commission, Francesca’s claimed it is “evaluating several choices to enhance its liquidity and fiscal situation.” The company plans to significantly cut operating fees, raise liquidity, and reduce lease expenditures through concessions and deferrals.
“If the Company is not able to elevate ample additional money to carry on to fund functions and spend its obligations, the Organization will probable need to have to look for a restructuring below the safety of applicable individual bankruptcy guidelines,” Francesca’s stated in the submitting.
“The precise quantity of boutiques the Corporation closes may modify. In link with these boutique closures, the Organization expects to incur overall impairment fees of about $29. million to $33. million for the duration of the 13 and thirty-9 months ended October 31, 2020,” the submitting reads.
Francesca’s is among the numerous stores that have been tricky by the pandemic. J.C. Penney, Neiman Marcus, and Brooks Brothers have all filed for individual bankruptcy citing pandemic-similar problems and struggles to compete from on line stores.
J.C. Penney was bought out by shopping mall operators Simon Property Team and Brookfield Residence Partners, which has kept some stores open up.
Shares for Francesca’s Holdings Corp. plunged Monday. By 3:30 p.m. ET, Francesca’s share price fell to $2.499, down 31.53%.