Francesca’s Appears Heading for Shutdown

Francesca’s, the Houston-based women’s boutique chain that once packed malls and lifestyle centers across the country, appears to be winding down operations, a move that could leave hundreds of shopping centers scrambling to fill space.

Women’s Wear Daily reported late last week that the retailer is “liquidating our inventory and closing soon,” citing an email from a Francesca’s customer service representative as well as confirmation from vendors, merchants and former buyers. One vendor told WWD it is allegedly owed $250 million in unpaid invoices, according to the Houston Business Journal.

The company’s website currently advertises a “warehouse sale,” with all clearance items priced at $15 or less, but makes no explicit mention of liquidation or store closures. Still, the signs point to trouble for a chain that operates more than 450 boutiques across 45 states and employs more than 3,400 people, according to its website. In the Houston area alone, Francesca’s has 16 stores, many embedded in malls and open-air shopping centers.

Founded in Houston in 1999, Francesca’s carved out a niche with small-format boutiques, fast-turn merchandise and a curated feel that appealed to suburban mall shoppers. But like many specialty apparel retailers, the company struggled as foot traffic softened and e-commerce intensified, according to the outlet. In the years leading up to the pandemic, Francesca’s closed stores, cut jobs and tweaked its merchandising in an attempt to stabilize performance, ultimately concluding a strategic review in 2019 with a renewed focus on a turnaround plan.

The pandemic upended those efforts. The retailer filed for Chapter 11 bankruptcy protection in December 2020, emerging two months later after being sold for $18 million to Francesca’s Acquisition, an affiliate of TerraMar Capital, along with Tiger Capital Group and SB360 Capital Group. New ownership attempted to reposition the brand, including launching Franki by Francesca’s, a tween-focused concept, and acquiring wardrobe basics brand Richer Poorer in 2023 to build a multibrand platform, according to the publication.

— Eric Weilbacher