Express Seeks Bankruptcy, Plans 100+ Store Closures
Express Inc., the fashion retailer known for its presence in U.S. malls and brands including Express, Bonobos, and UpWest, has filed for Chapter 11 bankruptcy protection. The company plans to close approximately 95 of its Express retail stores and all 12 of its UpWest locations as part of its restructuring efforts. The decision follows challenges such as soft consumer demand, shifting spending patterns, and increased price sensitivity.
The retailer, which has listed assets and liabilities in the range of $1 billion to $10 billion, has appointed Mark Still as the new Chief Financial Officer. To stabilize its operations during the restructuring process, Express has secured $35 million in new financing from its current lenders, subject to court approval.
In parallel with the bankruptcy filing, Express has received a non-binding letter of intent from a consortium led by brand management firm WHP Global, which includes mall landlords Simon Property Group Inc. and Brookfield Properties, indicating an interest in purchasing the company's operations and a significant majority of its retail stores. The Chapter 11 process is expected to facilitate the potential sale. Despite the planned closures and sale negotiations, Express aims to continue operating its remaining stores and brands during the restructuring.
