Express, Inc. Declares Bankruptcy: Over 100 Stores Closing as Retailer Seeks Revival Through Sale
Express Inc declares bankruptcy with over 100 stores closing
Express, Inc., a prominent clothing retailer favored by millennials, has officially filed for Chapter 11 bankruptcy amidst a challenging retail environment. The announcement came with a significant decision to shutter over 100 stores across the United States. This is including all of its UpWest locations and nearly one-fifth of its 500 Express stores, starting this Tuesday.
This drastic step follows a comprehensive evaluation of its operations and market conditions. The affected stores span across key states like California, New York, Pennsylvania, and Texas. However, a complete list available in court documents related to the bankruptcy proceedings.
In a strategic move to salvage its brand, Express has entered into a preliminary agreement for a potential sale. The company disclosed receiving a nonbinding letter of intent from WHP Global. It is supported by key real estate players including Simon Property Group and Brookfield Properties. This partnership could inject much-needed capital and business acumen into the struggling retailer.
To facilitate its restructuring process, Express secured $35 million in new financing from its current lenders. Of course, this is subject to court approval. Also, they will receive an additional $49 million from the Internal Revenue Service under provisions of the CARES Act. The company also announced internal leadership changes, appointing Mark Still, previously the interim CEO since November 2023, as the new CFO.
Express’s CEO, Stewart Glendinning, expressed confidence in the company’s future, emphasizing ongoing efforts to refine product offerings and enhance customer connections. This bankruptcy filing, while a significant restructuring step, is seen as a pivotal move to position Express for profitable growth and long-term success in the evolving retail landscape.
Express Inc declares bankruptcy with over 100 stores closing