Francesca’s (Houston) may consider filing for Chapter 11 bankruptcy protection, CNBC reports.
According to the retailer’s CEO and President Andrew Clarke, the company is exploring a number of options as it combats a quarterly sales decline of 29 percent, including filing for bankruptcy. The retailer’s shares fell 27 percent during Tuesday morning trading.
Francesca’s had losses in the second quarter totaling $17.2 million, compared to a profit of $1.8 million a year earlier, CNBC reports.
Beyond filing for bankruptcy, the retailer is also considering lease concessions, restructuring its debt and liabilities and possibly making additional cuts to its operating and capital expenditures.
In a statement, Clarke said, “We are operating within what continues to be an unprecedented and extremely challenging environment.”