Women’s apparel and accessories retailer Francesca’s is closing outlets and cutting costs, but has yet to make headway against the forces that have swept other store operators into bankruptcy, WSJ Pro Bankruptcy reported. The company yesterday reported three-month results that show that downward trends in sales and profits continue. This comes despite efforts to trim and refresh the operation and the hiring of Interim Chief Executive Officer Michael Prendergast, a professional with the restructuring advisory firm of Alvarez & Marsal, who took the helm of parent Francesca’s Holdings Corp. in February. The company is paring back its mall-based chain and selling off existing inventory in the second quarter, hoping to clear the shelves of old, slow-selling goods to make way for a new line of products. As of May 4, the end of its first quarter, Francesca’s operated 722 stores. That is down from 738 stores at the end of the third quarter 2018. Plans are to close 30 stores or more this year, and Francesca’s made a start in the first quarter, cutting its store count by a net of five outlets.
