Apparel and accessories retailer Francesca’s (FRAN) announced Monday that 140 stores will be closing by Jan. 31, 2021. The company also warned that filing for bankruptcy was not off the table as it continues to be hampered by the COVID-19 pandemic.

In a filing with the Securities and Exchange Commission, Francesca’s said it is “evaluating various alternatives to improve its liquidity and financial position.” The company plans to drastically cut operating expenses, raise liquidity, and reduce lease expenses through concessions and deferrals.

“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 the filing.

“The actual number of boutiques the Company closes may change. In connection with these boutique closures, the Company expects to incur total impairment charges of approximately $29.0 million to $33.0 million during the thirteen and thirty-nine weeks ended October 31, 2020," the filing reads.

Francesca’s is among the many retailers that have been hard by the pandemic. J.C. Penney, Neiman Marcus, and Brooks Brothers have all filed for bankruptcy citing pandemic-related issues and struggles to compete against online retailers.

J.C. Penney was bought out by mall operators Simon Property Group and Brookfield Property Partners, which has kept some stores open.

Shares for Francesca’s Holdings Corp. plunged Monday. By 3:30 p.m. ET, Francesca's share price fell to $2.499, down 31.53%.

Pat Phythian, owner of Ottawa clothing store Frou Frou, said she was "eager to get back to work" after two months off -- not just because the financial hit, but also because she missed the people
Pat Phythian, owner of Ottawa clothing store Frou Frou, said she was "eager to get back to work" after two months off -- not just because the financial hit, but also because she missed the people AFP / Dave Chan
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