Mall-based women’s retailer begins liquidation, closing all stores

Usually, erstwhile a retailer finds itself successful fiscal trouble, experienced observers spot the signs.

In the period earlier JCPenney filed for Chapter 11 bankruptcy, for example, regular shoppers noticed that inventory was thin. You mightiness spot the shirt, shoes, oregon brace of pants you wanted, but it would lone beryllium disposable successful little communal sizes.

That's due to the fact that erstwhile stores statesman conserving cash, they chopped backmost connected inventory.

In galore cases, that becomes a decease spiral due to the fact that erstwhile consumers sojourn a brick-and-mortar retail store and can't get what they want, they either locomotion elsewhere successful the promenade to marque the acquisition oregon bargain it online.

There are, however, cases wherever a retail concatenation closing surprises its customers, and that's apt the lawsuit with the abrupt vacation play determination for Francesca's to unopen down each of its stores.

Over the vacation weekend, shoppers recovered liquidation income already underway astatine Francesca’s locations nationwide.

In addition, Visitors to the Francesca's website apt noticed thing was incorrect erstwhile they were greeted with a banner touting a "last chance, online lone warehouse sale." The tract offers 30% disconnected astir items and a ample clearance conception marked "$15 and under."

Other sections of the website connection up to 80% off, but nary notation is made of the shutdown. That news, however, was confirmed arsenic the institution said it would beryllium “liquidating our inventory and closing soon,” a typical confirmed to Women’s Wear Daily (WWD).

The manner quality outlet reported that the abrupt closure and liquidation were owed to unpaid vendors.

"One of Francesca’s vendors said that the liquidation is believed to see 'inventory that has not been paid for.'" The vendor besides alleged that the steadfast is owed $250 cardinal successful unpaid invoices, telling the outlet that “there has been nary correspondence whatsoever from firm to immoderate of the vendors,” WWD reported.

Francesca's has not returned requests for remark connected those allegations.

The mall-based retail concatenation with much than 450 stores has not filed for Chapter 11 oregon Chapter 7 bankruptcy. Multiple media reports accidental the concatenation is expected to record Chapter 11 bankruptcy arsenic soon arsenic Tuesday, Jan. 20, erstwhile national courts reopen aft the Martin Luther King Jr. Day national holiday.

• Francesca's, a longtime women’s covering and accessories chain, is closing each of its remaining stores nationwide and liquidating inventory, according to Women’s Wear Daily.

• The retailer, which grew to run much than 450 boutiques crossed the United States, has begun “last chance” clearance and warehouse merchantability pricing arsenic it works done inventory up of shutting its doors.

• Even well-traveled locations, including a store successful a large destination buying country similar Disney Springs, are expected to adjacent arsenic portion of the nationwide shutdown, reported Disney Dining.

• The institution had antecedently filed for Chapter 11 bankruptcy successful 2020, according PacerMonitor.

In 2020, Francesca’s filed for bankruptcy and closed hundreds of locations, according to the Houston Chronicle.

At the time, the retailer blamed the pandemic and accrued contention from online retailers. In 2021, the institution changed ownership and was sold for $18 cardinal to an affiliate of TerraMar Capital and Tiger Capital.

And portion a fig of mall-based retailers, including Claire's and Forever 21, filed for Chapter 11 bankruptcy successful 2025, it's not truly just to blasted promenade traffic.

More Retail:

• Costco sees large displacement successful subordinate behavior

• Retail concatenation shuts each locations arsenic ineligible changes deed industry

• Lululemon struggles to reverse concerning lawsuit behavior

• T-Mobile launches escaped connection for customers aft large loss

"Visits to indoor malls grew 1.3% successful 2025 from the erstwhile year, according to Placer.ai's December 2025 Mall Index.

"Open-air buying centers led the battalion during the holidays, with year-over-year postulation up 2% successful Q4 and 1.5% successful December. Outlet malls lagged, however, seeing a 1.1% year-over-year driblet successful 2025 wide and a 0.7% autumn successful Q4," the information showed.

Most Francesca's locations are successful accepted indoor malls.

The Francesca's Facebook leafage advertises the website sale, but does not explicitly admit that the concatenation is closing nationwide. The chain's Instagram leafage besides promotes the sale, but has turned disconnected comments.

Customers person posted connected Reddit that liquidation would statesman Jan. 16 crossed each stores.

“This station is regarding Francesca’s boutiques,” 1 idiosyncratic wrote. “Starting from January 16, they are going to commencement liquidation successful each their stores. Don’t cognize what the income are going to beryllium yet, but they’re gonna beryllium big. Come shop!”

Francesca's appears to beryllium portion of a broader inclination arsenic Forever 21 and Claire's some targeted akin customers.

Greg Portell, elder spouse and planetary markets pb astatine Kearney, said that the Forever 21 bankruptcy was predictable.

“In the lawsuit of Forever 21, the reasons fixed by absorption were each known astatine the clip of their archetypal bankruptcy,” helium told Retail Brew via email. “Forever 21 either failed to admit those threats oregon failed to code them erstwhile they had bankruptcy protection. In the end, immoderate institution should expect contention and tin payment from moving to expect those moves.”

That concatenation besides suffered from changing user trends.

“As user consciousness astir the biology interaction of accelerated manner grew, Forever 21 struggled to align its concern exemplary with a much sustainable, ethical approach,” Denise Green, manager of postgraduate studies successful Cornell University’s fibre subject and apparel plan program, told the retail quality site. “The company’s overexpansion and inefficient proviso concatenation further exacerbated its fiscal woes.”

Related: Inside Amazon’s concealed determination to situation Walmart’s strength

This communicative was primitively published by TheStreet connected Jan 18, 2026, wherever it archetypal appeared successful the Retail section. Add TheStreet arsenic a Preferred Source by clicking here.