Mall-based women’s retailer begins liquidation, closing all stores

Usually, when a retailer finds itself in financial trouble, experienced observers see the signs.

In the month before JCPenney filed for Chapter 11 bankruptcy, for example, regular shoppers noticed inventory thinning. You may see the shirt, shoes or pair of pants you want, but it will only be available in less common sizes.

That’s because when stores start saving cash, they cut back on inventory.

In many cases, that becomes a death spiral because when consumers visit a brick-and-mortar retail store and can’t find what they want, they either walk elsewhere in the mall to buy it or buy it online.

However, there are cases where a retail chain surprises its customers when it closes, and this is possible with Francesca’s sudden holiday weekend decision to close all of its stores.

Over the holiday weekend, shoppers found liquidation sales going on at Francesca’s locations nationwide.

Additionally, visitors to Francesca’s website likely noticed something was amiss when they were greeted with a banner saying “Last Chance, Online Only Warehouse Sale.” The site offers 30% off most items and a large clearance section marked “$15 and under.”

Other sections of the website offer up to 80% off, but no mention of closure. That news, however, was confirmed as the company “is depleting our inventory and will be closing soon,” a representative confirmed to Women’s Wear Daily (WWD).

The fashion news outlet reported that the sudden closure and liquidation was due to unpaid vendors.

“One Francesca vendor said the liquidation is believed to involve ‘unpaid inventory.'” The vendor also accused the firm of $250 million in unpaid invoices, telling the outlet that “there has been no correspondence from corporate to any vendor,” WD reported.

Francesca has not returned requests for comment on those allegations.

The mall-based retail chain, which has more than 450 stores, has not filed for Chapter 11 or Chapter 7 bankruptcy. Several media reports expect the Chapter 11 bankruptcy filing as early as Tuesday, January 20, when federal courts reopen after the Martin Luther King Jr. Day federal holiday.

• Francesca, is a long-standing women’s clothing and accessories chain Closing all of its remaining stores nationwide and liquidating inventory, according to Women’s Wear Daily.

• Retailers, who grew to operate more 450 boutiques across the United States“Last chance” clearance and warehouse sale pricing has begun as it works through inventory before closing its doors.

• Even well-traveled locations, including stores in major destination shopping areas such as Disney Springs, are expected to close as part of the nationwide shutdown, Disney Dining reported.

• The company previously filed for Chapter 11 bankruptcy in 2020, according to PacerMonitor.

In 2020, Francesca’s filed for bankruptcy and closed hundreds of locations, according to the Houston Chronicle..

At the time, retailers blamed the pandemic and increased competition from online retailers. In 2021, the company changed ownership and was sold to Terramar Capital and an affiliate of Tiger Capital for $18 million.

And when several mall-based retailers, including Claire’s and Forever 21, file for Chapter 11 bankruptcy in 2025, blaming mall traffic isn’t really fair.

More retail:

“A Tour of Indoor Malls 1.3% growth in 2025 From previous year according to Placer.ai’s December 2025 Mall Index.

“Open-air shopping centers led the pack during the holidays, with year-over-year traffic up 2% in Q4 and 1.5% in December. Outlet malls trailed, however, seeing a 1.1% year-over-year decline overall in 2025 and a 0.7% decline in Q4,” the data showed.

Many Francesca’s locations are in traditional indoor malls.

Francesca’s Facebook page advertises the website sale, but does not explicitly acknowledge that the chain is closing nationwide. The chain’s Instagram page also promotes the sale, but has turned off comments.

Customers posted on Reddit that liquidation at all stores will begin on January 16.

“This post is about Francesca’s Boutique,” one user wrote. “Starting January 16th, they’re going to start liquidation in all their stores. Don’t know what the sales are going to be, but they’re going to be big. Come shop!”

Both Francesca Forever 21 and Claire’s seem to be part of a wider trend targeting similar customers.

Greg Portell, senior partner and global markets lead at Kearney, said that Forever 21 bankruptcies were predictable.

“In the case of Forever 21, the reasons given by management were all known at the time of their first bankruptcy,” he told Retail Brew via email. “Forever 21 either failed to recognize those threats or failed to address them while they had bankruptcy protection. Finally, any company should expect competition and can benefit by working to anticipate those moves.”

That chain also suffers from changing consumer trends.

“As consumer awareness of fast fashion’s environmental impact grew, Forever 21 struggled to align its business model with a more sustainable, ethical approach,” Dennis Green, director of graduate studies in Cornell University’s fiber science and apparel design program, told the retail news site. “The company’s over-expansion and inefficient supply chain exacerbated its financial woes.”

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This story was originally published by TheStreet on January 18, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.