Signage for Francesca’s Collections, a subsidiary of Francesca’s Holdings Corp., is displayed exterior of a retailer in Shrewsbury, New Jersey.
Emile Warnsteker | Bloomberg | Getty Images
The attire chain Francesca’s is now planning to shut a further 97 areas which comes after its latest filing for bankruptcy safety, in accordance to court docket paperwork, dealing another blow to mall house owners.
The Houston-headquartered firm, which filed for Chapter 11 final week, had beforehand stated it deliberate to shut about 140 of its 700 stores — roughly half of that are in U.S. purchasing malls.
The bankruptcy filing and information of extra retailer closures comes within the midst of the vacation season and follows dozens of different clothes retailers, together with J.Crew and Brooks Brothers, in search of reorganization in the course of the coronavirus pandemic. Francesca’s had to briefly shut its stores in March, leading to a 50% drop in first-quarter internet gross sales, which raised doubts about its skill to keep afloat.
Francesca’s stated it presently has a takeover supply from TerraMar Capital, which is serving because the stalking horse bidder in its sale course of. Its present lender, Tiger Finance, has dedicated to present a $25 million bankruptcy mortgage. Francesca’s stated it’s aiming to full a sale by late January.
Some of Francesca’s high landlords embody mall house owners Simon Property Group, Brookfield, CBL & Associates and Pennsylvania REIT. The latter two each filed for bankruptcy safety final month, damage by their retail, restaurant and leisure tenants both not paying lease or closing their doorways for good.
Another wave of retail bankruptcies and retailer closures is anticipated to hit in early 2021, after corporations work by means of the vacations and are ready to reassess the well being of their companies.