27-year-old mall retailer in Chapter 11 bankruptcy sets final dates

Once a retailer shares plans for a liquidation sale, it starts a process that shoppers need to be wary of. Yes, you can get great deals, but you can also end up stuck with defective items or overpaying for something advertised as a bargain.

Having covered dozens of retail liquidation sales over the years, I’ve seen the same pattern repeat. Early “deals” often disappoint, while risks to buyers quietly increase as closures approach.

“If you’re getting an $800 washing machine for $200, it might be worth it, but if it’s only $100 off, you might say, ‘I’d rather buy it from somebody who’s going to be around in six months,’” BBB spokeswoman Katherine Hutt told Forbes.

It's also important to know the merchandise you're buying as liquidation firms often bring in merchandise from other stores during a going-out-of-business sale.

When Sports Authority closed, for example, my local store was selling cheap yoga mats that weren't on its shelves before the closing sale. Just because an item is in a store does not mean it would have been sold by the chain before its liquidation sale.

It's important to verify price, return policy, and to know what you're getting. It's also important to stay on top of dates, as policies change, gift card redemption usually ends at some point, and discounts tend to improve as the final days approach.

Fans of Francesca's, the national mall retailer, which filed Chapter 11 bankruptcy in Feb. need to pay attention to the details as the chain's going-out-of-business sales progress.

Francesca's has already started liquidation sales

Francesca's plans to close its entire fleet of roughly 457 stores in 45 states. It has already stopped selling items on its website, and after starting at 25-40% discounts, it has further marked down items to 30-50% off, according to its website.

Tiger Group, SB360 Capital Partners, and GA Group, acting as advisors to Francesca's, are running the sales.

"It's an opportunity to add to or accessorize your wardrobe, find unique gifts, or just go on a treasure hunt for extraordinary deals," said Tiger Group member Michael McGrail in a press release.

• Francesca's has not set a final closing date.
• The retailer will accept gift cards in its stores until Feb. 26.
• As of January 14, 2026, all sales are final.
• For purchases prior to January 14, 2026, all eligible items can be returned to any open boutique accompanied by the original receipt and tags within 21 days of when you received your item.
• Prior purchases are not eligible for final sale price adjustments.

The company also warned customers that "additional inventory will be included in the sale." That means that some items being sold were not offered by Francesca's before this sale.

Francesca's Chapter 11 bankruptcy facts:

"Going‑out‑of‑business sales allow a Chapter 11 debtor, through a liquidation agent, to sell remaining inventory and fixtures at a discount even if state law or lease provisions say otherwise, which lets the debtor recover value instead of abandoning assets,” according to Rachel Ehrlich Albanese and David Riley, writing for the American Bar Association Business Law Today.

• Francesca’s filed for Chapter 11 bankruptcy in early February 2026, initiating a court-supervised liquidation process, according to court filings on PacerMonitor.
• Case Number: 26-11312 (MEH) in the U.S. Bankruptcy Court for the District of New Jersey (joint administration requested), reported Stretto.
• Assets & Liabilities (initial filing range): Estimated between $10 million and $50 million in assets, with $50 million to $100 million in liabilities according to court-reported filing details, according to PacerMonitor.
• The company said the Chapter 11 process is designed to maximize value while winding down operations, rather than reorganizing to continue business, according to a press release.
• Francesca’s previously filed for Chapter 11 in December 2020 and emerged in 2021 after being sold to affiliates of TerraMar Capital and Tiger Capital, the company added.
• Despite multiple turnaround efforts and brand acquisitions, the retailer failed to return to sustained profitability, leading to the 2026 liquidation filing, according to Retail TouchPoints.

ALSO READ: Mall retailer closing all stores in bankruptcy may survive

Why did Francesca's fail?

Francesca's essentially saw its financing collapse, forcing it to file Chapter 11 bankruptcy.

"The retailer moved to cease operations after receiving a notice of default from its lender on Jan. 8. This followed news at the end of December that an investor who previously pledged to supply operating funds to support Francesca’s through January would no longer provide the necessary capital," Retail Dive reported. 

Francesca’s also learned that funding was terminated by lenders for two of its major suppliers, making it impossible for the company to receive products from those suppliers.

The chain's demise may seem sudden, but GlobalData Managing Director Neil Saunders said the signs were there.

"Francesca’s has long been a brand in decline. Even before its pandemic bankruptcy filing it was losing ground with audiences, especially teen girls," he wrote on RetailWire.

He said the company simply lost its relevance.

"The deeper issue is that Francesca’s has not inserted itself into the culture or lives of younger consumers to maintain relevance. Sure, one can partly blame declining mall traffic and skittish teen consumption – but neither of those things has impacted similarly situated Pacsun, which is performing really well," he added.

Georgeanne Bender, a retail consultant with over 30 years of experience, believes Francesca's simply lost its mojo.

"There was a time when shopping at Francesca’s felt like discovering a great indie boutique. The merchandise was thoughtfully curated, and the displays felt fresh and unexpected, especially for a chain store," she wrote.

The chain was not able to maintain that feeling.

"But over the past few years, that feeling has faded. The curated assortment gave way to cheaper, more generic products you could find almost anywhere. As the stores lost what made them special, shoppers gradually lost interest too," she added.

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