Women's apparel and accessory retailer Francesca's said a "sudden and unforeseen series of events" led to the liquidation of its business and ceasing operations.
Francesca's plans to permanently close the entirety of its U.S. operations, including the closure of more than 450 stores in 45 states, as well as its headquarters at 8760 Clay Road in Houston, the retailer said in a letter to the Texas Workforce Commission. The closure will impact 202 jobs tied to the Houston facility, according to the letter.
"While this is difficult news, the company provided written and verbal notice to employees as soon as the company was able after learning of the unforeseen circumstances," Francesca's Chief Stores and Culture Officer Christine Kaighn said in the letter.
Francesca's received a notice of default from its lender on Jan. 8 and started closing stores and selling its existing inventory on Jan. 14, the letter said.
Kaighn said the company had been "actively and in good faith" attempting to secure alternative funding and capital investment to support its operations before the default notice. At least six investors engaged in discussions, with one pledging sufficient funds to maintain operations through January 2026, she said.
However, Francesca's learned at the end of December the potential investor would no longer provide the necessary capital. Less than a week later, Kaighn said, two of its major suppliers had their own funding terminated by their respective lenders, making them unable to continue supplying products to the retailer.
"This difficult decision was not anticipated and resulted from sudden and unexpected circumstances that have made it impossible for the company to remain viable," Kaighn said.
The retailer is touting its 25th anniversary on its website, saying it has 457 stores in 45 states with more than 3,400 employees.
DRA Advisors, which owns the Houston property where Francesca's is cutting jobs, did not immediately respond to an emailed interview request from CoStar News.