Francesca's allegedly fires workers without warning as women's clothing retailer shuts down for good

After years of financial turmoil and a post-bankruptcy sale, the once-popular women’s specialty retailer Francesca’s is preparing to shut down its remaining stores, with reports that employees were laid off without warning and that vendors allege they are owed hundreds of millions of dollars in unpaid invoices.

Francesca’s — a once-beloved women’s boutique chain selling clothing, jewelry, accessories and gifts — is reportedly in the process of closing all 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 Jan. 16, 2026, and sources told industry outlets that many employees were let go abruptly with no advance notice.

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One vendor that spoke to Women’s Wear Daily said the firm is owed approximately $250 million in unpaid invoices and that “there has been no correspondence whatsoever from corporate to any of the vendors.”

Francesca’s 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 locations operating at that time.

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

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

At the time of its bankruptcy filing, Francesca’s said it planned to renegotiate a number of leases, which could include closing additional boutiques.

In the years after exiting bankruptcy, Francesca’s attempted revival efforts, including launching a tween-oriented line called Franki by Francesca’s 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.

Founded in 1999 in Houston, Texas, Francesca’s expanded rapidly in malls and shopping centers across the U.S. before going public in 2011. The brand built a loyal following by blending boutique-style fashion with accessible price points.

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

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The Wall Street Journal contributed to this report.