Francesca’s is winding down its retail business after a US bankruptcy court approved the company’s Chapter 11 liquidation plan that will bring an end to the womenswear retailer’s more than 25-year run.
A New Jersey bankruptcy judge cleared the way for the sale of the failed company’s remaining assets, including its brand name, website, and intellectual property.
The retailer operated more than 450 stores across 45 US states before filing for bankruptcy in February. It closed its remaining locations by March after its lender issued a notice of default and key suppliers lost funding.
The liquidation includes the sale of Francesca’s intellectual property to Stand Out For Good, parent company of Altar’d State, for about $7 million.
This deal also covers Francesca’s trademarks, branding assets, social media accounts, and customer data.
According to the joint plan of liquidation, 28 parties accessed the company’s data room to review its holdings and financial information during the marketing process, but no other qualified bids were received.
The court filing said Francesca’s had also resolved objections from landlords and other creditors related to its store-closing sales, clearing another hurdle in the wind-down.
Francesca’s had operated since 1999, building its business around boutiques in upscale malls and shopping centres.
But the retailer struggled with low online sales penetration and an unfocused product offering, while supply chain problems, inflation, and tighter cash constraints added to the pressure.
The company had briefly returned to profitability in 2021 and 2022 after restructuring its store portfolio, but later faced renewed financial difficulties.
Francesca’s latest bankruptcy was its second in about six years. In its February filing, the company pointed to constrained liquidity after previous restructuring efforts, increased competition from e-commerce, underperforming investments in non-core brands, and a 2023 data breach.
The company began a phased liquidation of its stores shortly after filing for Chapter 11, ultimately ended its physical retail operations.
