Francesca’s shutting down all remaining locations after bankruptcy sale

After years of financial turmoil and post-bankruptcy sell-offs, once-popular women’s retailer Francesca’s is preparing to close its remaining stores, with reports that employees have been laid off without warning and vendors claim they are owed hundreds of millions of dollars in unpaid bills.

Francesca’s — a beloved women’s department store chain that sells clothing, jewelry, accessories, and gifts — is reportedly in the process of closing all of its remaining stores as company representatives confirmed the chain is liquidating inventory and “closing soon,” according to Women’s Wear Daily.

Liquidation sales were reported to have begun as early as January 16, 2026, and sources told industry outlets that several employees were suddenly laid off without prior notice.

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One vendor who spoke to Women’s Wear Daily said the company owes about $250 million in unpaid invoices, and that “there has been no correspondence at all from the company to any of the vendors.”

Francesca filed for Chapter 11 bankruptcy protection in December 2020 amid declining in-store sales and other financial challenges. During the bankruptcy process, the company said it planned to close about 140 stores, leaving 560 operational locations at the time.

In early 2021, the company’s assets were sold post-bankruptcy to Francesca’s Acquisition LLC, an affiliate of TerraMar Capital and Tiger Capital Group, for $18 million. Despite the restructuring, the company continued to face liquidity issues and financial pressures.

Neither Francesca’s headquarters nor TerraMar Capital immediately responded to Fox News Digital’s requests for comment.

At the time of its bankruptcy filing, Francesca said it planned to renegotiate a number of leases, which may include closing additional stores.

In the years after emerging from bankruptcy, Francesca has tried to revive its efforts, including launching a teen-oriented line called Frankie by Francesca and acquiring Miley Cyrus and Suki Waterhouse’s lifestyle brand Richer Poorer. The chain also opened a new store at the American Dream Mall in East Rutherford, New Jersey, in April 2024.

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Founded in 1999 in Houston, Texas, Francesca quickly expanded into malls and malls across the United States before going public in 2011. The brand has gained a loyal following by blending boutique-style fashion with accessible price points.

As of mid-January 2026, Francesca’s website listings still show hundreds of sites operating, even as the company moves toward a complete shutdown.

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The Wall Street Journal contributed to this report.