Francesca’s to Close 140 Stores, Bankruptcy on Table

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Francesca’s Holdings Corporation announced in a Form 8-K filed on November 16, 2020 that it has adopted a plan to close nearly 140 boutiques, or roughly 20% of its stores, by January 30, 2021. The actual number of boutiques the Company closes, however, may change. In connection with these boutique closures, the Company expects to incur total impairment charges of approximately $29.0 million to $33.0 million during the thirteen and thirty-nine weeks ended October 31, 2020.

The Company is “evaluating various alternatives to improve its liquidity and financial position, including but not limited to, further lease concessions and deferrals, further reductions of operating and capital expenditures, raising additional capital, including seeking a refinancing of the Company’s debt and restructuring its debt and liabilities through a private restructuring or a restructuring under the protection of applicable bankruptcy laws.” 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.”

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