A national retail chain that’s based in Texas is shutting down, according to a state filing.
Francesca’s, which is based in the Houston area, said it is closing its entire operations, according to a letter provided to the Texas Workforce Commission for a WARN notice. The move follows a periodic progression of store closings and employee layoffs that began earlier this month.
“This difficult decision was not anticipated and resulted from sudden and unexpected circumstances that have made it impossible for the Company to remain viable,” the letter said.
The women’s clothing chain started as a single boutique in Houston in 1999 and has grown to more than 450 stores in 45 states, according to its website. The company filed for bankruptcy around 2020.
The company has about 15 stores in North Texas, according to its website, including at the Galleria Dallas shopping mall, Stonebriar Centre in Frisco and The Shops at Legacy in Plano.
The shutdown in the Houston area will affect more than 200 employees, according to the letter.
The retail industry has run into headwinds as it grapples with shifting tastes and ongoing pressure from e-commerce options. Earlier this month, Saks Global filed for bankruptcy after acquiring Dallas’ Neiman Marcus more than a year ago.
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At Francesca’s, prior to Jan. 8, the company actively attempted to secure alternative funding and capital investments to support operations. Yet at the end of last year, it learned that a potential investor would not be providing the necessary capital, and less than a week later, the learned that two of its major suppliers had their own funding terminated by their respective lenders, the letter said. That made it impossible for the suppliers to deliver necessary product to the Francesca’s.
“This sudden and unforeseen series of events was not what the company had hoped for or expected and unfortunately as a result, the long-term viability of the company is impossible,” it said. “After assessing options, the company concluded, in its business judgment, that it had no alternative but to immediately cut costs, sell existing inventory and ultimately cease operations.”
