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Francesca's uses dreaded 'going concern' phrase

  • Francesca's Holdings (NASDAQ:FRANdrops 13% after the COVID-19 pandemic has hurt its revenue and cash flows, raising "substantial doubt about its ability to continue as a going concern."
  • Nevertheless, FRAN says it's taking "aggressive and prudent actions" to cut costs, defer payments of accounts receivable and inventory purchases to preserve cash on hand.
  • It's temporarily put on furlough substantially all corporate and boutique employees, cut base salaries of its senior leadership team, suspended payment of all accounts payable other than those needed to support its ecommerce business, and is deferring payment of rent at all of its stores, corporate headquarters and distribution facility, among other actions.
  • It has also borrowed $5M under its amended asset-based revolving credit facility.
  • Conference call at 4:30 PM ET.
  • Previously: Francesca's reports Q4 results (May 1)

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FRAN--
Francesca's Holdings Corporation