After filing for Chapter 11 bankruptcy protection, women’s specialty retailer Francesca’s is moving to close all stores. The decision includes 18 locations in New Jersey.

The Houston-based chain filed a petition Feb. 5 in U.S. Bankruptcy Court for the District of New Jersey. In it, Francesca’s said it plans to shutter its 450 stores nationwide and liquidate all assets.

As part of the Chapter 11 process, Francesca’s will launch court-approved closing sales across its entire fleet. Locations will offer discounts of between 25% to 40% on merchandise that includes sweaters, blouses, skirts, intimates, loungewear, dresses, jackets, jumpsuits, jewelry and accessories, the brand said.

It is not clear how long stores will remain open.

Founded in 1999, Francesca’s is known for selling affordable women’s apparel, accessories, jewelry and gift items. A popular destination at malls, the chain has an e-commerce platform that receives over 20 million visitors annually.

Within New Jersey, Francesca’s has 18 outposts statewide. That includes a shop that opened two years ago at American Dream in East Rutherford.

‘A structured path’

The filing follows weeks of speculation the retailer was preparing for Chapter 11.

Francesca’s previously sought bankruptcy six years ago amid financial struggles, increased online competition and pandemic-related challenges. Through the restructuring process, an affiliate of TerraMar Capital and Tiger Capital acquired the chain for $18 million.

In its latest petition, Francesca’s cited failed brand investments, inflation, supply chain issues and a 2023 data breach that shut down its systems. The filing lists estimated assets of $10 million to $50 million and estimated liabilities of $50 million to $100 million.

The company said it plans to continue paying employees wages and benefits, as well as post-petition obligations to vendors and partners while the process plays out.

In a statement, Francesca’s CFO Curt Kroll said Chapter 11 will provide the company with “a structured path to pursue the best outcome for all stakeholders.”

“We remain focused on operating responsibly and supporting our teams, partners and guests throughout this process,” he said.