This business owner is the latest of many to call out Francesca’s for failing to pay her the tens of thousands of dollars it owes her.
Francesca’s is a women’s clothing boutique known for its boho-leaning styles. In addition to clothing, Francesca’s sells accessories, home decor, and trinkets like Taylor Swift notepads.
Francesca’s history of financial trouble
The fashion brand nearly had to file for bankruptcy in 2020 amid the pandemic and had plans to close 140 of its more than 700 stores, which are primarily located in malls, Retail Dive shared.
And their troubles weren’t only because of bad foot traffic and spending during the pandemic. In 2019, the company had a net loss of $21.3 million in the fourth quarter, Retail Dive reported. An auditor said they have “substantial doubt” of the company’s viability.
The retailer seemed to turn things around, being dubbed a “success story” by a business journal after restructuring the business, launching a girls and tweens clothing brand, and partnering with ThredUp to implement a resell aspect to the business.
But less than a year later, in January of 2024, the same news source that praised its newfound success reported that Francesca’s may have a liquidity issue. This would mean it doesn’t have enough cash or liquid assets to meet its short-term financial obligations, like paying bills, invoices, and other expenses.
Sourcing Journals reported that some of Francesca’s vendors haven’t been paid for months, and a few haven’t been paid for nearly a year.
The Daily Dot has reported on several people who allege they haven’t been paid by the brand, including:
- The owner of Mugsby, which sells goods like drinkware and accessories, claimed the brand owed her $132,461.92 and failed to pay for five orders, including merchandise customized for the brand.
- Sammy Gorin (@sammygorinart), a small-business owner who makes greeting cards and other stationary items, said the company owes her $25,186.70 for four unpaid orders.
- Lauren Butler, the cofounder of Yes Cocktail Company (@yescocktailco), claims she is owed $14,340 for unpaid goods, and the company is refusing to communicate.
Another small business falls victim
It seems the business hasn’t corrected its course with its finances, and it continues to hurt small businesses.
In a viral video with more than 4.6 million views, Nicole, the owner of a wholesale brand called Trimmings (@shop.trimmings) that sells small items like stickers, greeting cards, and keychains, called out Francesca’s for not paying her.
“I’m making this video as a PSA of sorts to any other small businesses who are considering working with the retail chain Francesca’s,” Nicole said.
“Francesca’s currently owes me $67,000,” Nicole said.
She explained that the amount was from one purchase order that she received at the end of March and shipped at the beginning of April.
Nicole said she was “incredibly nervous” about how large the order was, considering the inventory alone would cost about $20,000. In comparison, most of her day-to-day orders are about $200.
She said she asked for a good faith payment up-front, even if it was just a percentage, which the brand denied, saying that it never does that and will only pay 60 days after it receives the shipment.
“I just had to trust them,” Nicole said, adding that she was also caught up in the excitement of getting such a large order from a retailer.
She said many of her items were bestsellers on the site, so she expected to have a continued relationship with the brand.
It’s now six months after payment was due, and Nicole said she hasn’t been paid a cent. This is despite her detailed invoices and reaching out more than 20 times to different team members.
“At the beginning, they would respond but with very vague excuses as to why they haven’t paid me yet,” Nicole said. “And then eventually they just stopped answering altogether.”
Nicole is out of options
Nicole said she hired a lawyer to demand payment, but that Francesca’s failed to respond to that letter as well.
Now, she said her only option left is to sue, but “I know that would cost me a lot of time and a lot of money that I just don’t have as a small-business owner.”
“I’m realizing how huge of an impact this is having on my bottom line. If you take anything away from this video, it’s to be really really really careful about who you do business with,” Nicole said in the caption.
@shop.trimmings Took me a while to post this but nearing the end of the year I’m realizing how huge of an impact this is having on my bottom line. If you take anything away from this video, it’s to be really really really careful about who you do business with. #francescas #smallbusiness #learnfromme #fyp #sidehustle #entrepreneurlife #exposed ♬ original sound – shop.trimmings
Commenters react
“Lawyer here. You absolutely need to sue. You should be able to find someone that will represent you on a contingency fee,” a person advised.
“I’m going to go take what I want from Francesca’s and tell them I’ll pay for it in 60 days,” a commenter said.
“Wait I saw a very similar video about this months ago. This is crazy that it’s still going on,” another added.
The Daily Dot reached out to Nicole for comment via email and Instagram direct message and to Francesca’s via email.
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The post ‘I work in billing and you’ve got to hound them everyday’: Woman says Francesca’s owes her $67,000. Now she’s issuing a dire warning appeared first on The Daily Dot.
