BATON ROUGE, La. (BRPROUD) — Francesca’s announced Monday it will permanently close about 140 stores by the end of January. The apparel and accessories retailer further warned it may have to also file for bankruptcy, in order to stabilize finances, as first reported by CNBC.
The retailer hopes to improve its financial situation by cutting operating expenses, raising capital and refinancing its debt or renegotiating leases, according to a Securities and Exchange Commission filing.
“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,” Francesca’s said in the filing.
Francesca’s has two locations in Baton Rouge. One in Perkins Rowe and another at The Mall of Louisiana. No word yet on whether either of these locations would be included in the list of store closures.
Francesca’s is among the list of retailers affected by temporary store closures and a drop in traffic since the coronavirus pandemic. Retailers J.C. Penney, Neiman Marcus and Brooks Brothers filed for bankruptcy protection in 2020.
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