Francesca’s to close 140 stores, warns of possible bankruptcy

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Francesca’s Holdings Corp. said Monday in an 8-K filing that it will close 140 stores by Jan. 31, 2021. The company expects to incur charges totaling $29 million $33 million through Oct. 31, 2020 related to the store closures. The number of stores the struggling women’s retailer will close could change. Francesca’s is considering options to improve its financial and liquidity situation, including restructuring debt and seeking lease concessions. The company said a bankruptcy restructuring is also an option under consideration. “If the Company is unable to raise sufficient additional capital to continue to fund operations and pay its obligations, the Company will likely need to seek a restructuring under the protection of applicable bankruptcy laws,” the company said. Francesca’s stock has plunged 77% over the past year while the S&P 500 index is up 16% for the period.
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