Women's fashion retailer Chico's (NYSE:CHS) announced it will close 120 stores and cut 240 jobs in an effort to manage its finances.
The company will close the locations by 2017, including 35 in 2015, reported Market Watch. Chico's expects to cut its budget to $100 million for the year, dropping its three-year average by 29 percent.
As a result, 240 jobs will be eliminated, which includes 12 percent of positions at the company's headquarters and field management base.
Just last year Chico's announced it would expand its locations internationally into Europe and Canada. And to expand its digital reach, Chico's partnered with Borderfree, a developer of international e-commerce, in 2014. Now the retailer's merchandise is available to online shoppers in 100 countries, encompassing 60 currencies.
Earlier this week, the company reported that a deal with Sycamore Partners to take Chico's private failed after the potential partners were unable to line up financing for the deal.
Despite the setbacks, Chico's reported that same-store sales grew 4.3 percent in the holiday quarter, compared with a 3.4 percent decline the year before.
-See this Market Watch article
Chico's announces international expansion
Chico's plans entrance into Canada for 2015
Chico's expands e-commerce to 100 countries
Chico's to reduce new store openings
Success in Canada is not one size fits all