Mall retailer Express has filed for U.S. bankruptcy protection, which could result in the closure of almost 100 stores nationwide.
In a commentary posted to its investor site, Express reports it has received a non-binding letter of intent from WHP Global and participants. These participants include an indirect subsidiary of Simon Property Group, L. P. and Brookfield Properties for the potential sale of a substantial majority of the company’s retail stores and operations.
Express and its subsidiary businesses, including Bonobos and UpWest, have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. Subsequently, Express received a commitment for $35 million in new financing from its existing lenders, subject to court approval.
“We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations,” said Stewart Glendinning, chief executive officer. “We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives.”
Express Inc. has filed for Chapter 11 bankruptcy protection and the fashion retailer is seeking to sell the majority of its stores. https://t.co/ZFc2qNpKxv
— ABC News (@ABC) April 22, 2024
The statement continues that WHP has been a strong partner for the company since 2023. This transaction should provide the company with additional financial resources, putting them in a better position for Express to become profitable.
The company plans to continue serving its customers both online and in its retail stores. However, it also plans to close almost 100 stores. Closing sales at affected stores will begin on April 23, 2024.
More internal changes within the company include appointing Mark Still as senior vice president and chief financial officer, effective immediately. Still has served as the company’s interim CFO since November 2023 and senior vice president of brand finance and planning & allocation since January 2023.
Express, Inc. is a multi-brand fashion retailer whose portfolio includes Express, Bonobos, and UpWest. Bonobos is a menswear brand known for its exceptional fit and innovative retail model. UpWest is an apparel, accessories, and home goods brand.
