Francesca’s, a women’s clothing and accessories chain, is closing all its stores nationwide and liquidating inventory after starting going-out-of-business sales over the holiday weekend. The abrupt closure is due to unpaid vendors, with one claiming $250 million in unpaid invoices. The chain is expected to file Chapter 11 bankruptcy soon. Customers have noticed liquidation sales and discounts of up to 80% on the website. The company previously filed for bankruptcy in 2020, citing pandemic challenges and online competition. Other mall-based retailers like Forever 21 and Claire’s have also faced bankruptcy due to changing consumer trends.Indoor mall visits grew by 1.3% in 2025, while open-air shopping centers fared better during the holidays. Francesca’s locations, mostly in indoor malls, are closing nationwide, with even popular destinations like Disney Springs expected to shut down their Francesca’s stores. The closure follows a 2020 bankruptcy and change in ownership. Customers have been informed of the liquidation sale starting on Jan. 16 across all stores on social media platforms like Facebook and Reddit.Industry experts suggest that recognizing threats and adapting to changing consumer behavior is essential for retailers to avoid bankruptcy. Forever 21, another bankrupt retailer, failed to address known threats and adapt to consumer demands for sustainability, which led to its financial woes. Francesca’s decision to close all stores and liquidate inventory is part of a broader trend of mall-based retailers facing bankruptcy due to changing consumer preferences and increased online competition.

Read more at Yahoo Finance: Mall-based women’s retailer begins liquidation, closing all stores