Following its recent filing for Chapter 11 bankruptcy protection, Francesca’s will shutter an additional 97 stores. The apparel and accessories retailer is seeking to sell both its brick-and-mortar locations and its ecommerce holdings. The company will continue operating during the process by utilizing a $25 million debtor-in-possession loan from Tiger Finance.
According to court documents, the additional closures are boutiques that are currently underperforming relative to lease costs. The retailer previously announced plans to close 140 stores and renegotiate a number of leases at other locations. As of the filing, Francesca’s still operated 558 locations. Approximately half of these stores were located in malls at the beginning of 2020, so they have been particularly susceptible to the decline in foot traffic caused by COVID-19.