Clothing retailer Francesca's
Like many retailers, Francesca's finances have been badly hurt by the coronavirus pandemic. The company's situation has deteriorated badly, to the point where it is closing 140 stores by next year. The closures will run up a bill of about $29 million to $33 million, and it may not be enough to help the company stay afloat.
"If the Company is unable to raise sufficient additional capital to continue to fund operations and pay its obligations, the Company will likely need to seek a restructuring under the protection of applicable bankruptcy laws," Francesca's said in an 8-K filing.
Francesca's would join the ranks of other retailers forced into bankruptcy by the pandemic, including JC Penny
The pandemic has been a nightmare for Francesca's financial situation, as well as its stock. The company has lost roughly 74% of its market value, year to date. The company retains a market value of just $7.2 million, a far cry from a year ago. News of the closures and potential bankruptcy badly rattled investors, causing Francesca's to lose 29% of its share value during trading on Monday, plummeting it $2.52 from an opening price of $3.53.