Francesca’s files for bankruptcy; local store escapes round of closings

Dec. 4, 2020

Francesca’s, a women’s boutique chain, has filed for bankruptcy protection and hopes to find a buyer through an auction.

The Texas-based company announced plans in September to close 140 of its 700 boutiques and attempts to renegotiate a number of leases during its reorganization, which may include closing additional boutiques. As of Thursday, 558 boutiques in 45 states remain open for business, including the Sioux Falls store in The Empire Mall.

“Implementing this process allows Francesca’s to address our lease obligations and seek a new investor that can see Francesca’s into the future,” CEO Andrew Clarke said.

Francesca’s has a commitment from its lender, Tiger Finance, for $25 million in financing that will allow it to continue to operate through the bankruptcy proceedings. It also has a letter of intent from investment firm TerraMar Capital that will serve as the “stalking horse” bid for the auction, which would be scheduled for January if approved by the bankruptcy court.

Other retailers with Sioux Falls locations that have filed for bankruptcy this year include J.C. Penney; Pier 1 Imports; Tuesday Morning; Hertz; the parent companies of Gordmans, Chuck E. Cheese and Men’s Wearhouse; Pizza Hut franchisee NPC International; Guitar Center and Ascena Retail Group, which includes Ann Taylor, Loft, Lane Bryant, Justice, Catherines and other brands.

The city lost Pier 1, Gordmans and Catherines stores and its only dine-in Pizza Hut. Justice is expected to close before Christmas, an employee said.

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Francesca’s files for bankruptcy; local store escapes round of closings

Another national retailer with a store in The Empire Mall has filed for bankruptcy.

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