Express Inc, a prominent retailer known for its casual office attire, has filed for Chapter 11 bankruptcy protection. The company, based in Columbus, Ohio, and founded in 1980, is seeking to sell the majority of its stores as part of the restructuring process.
Express, which owns the Bonbons and UpWest brands, has announced the closure of 95 Express retail stores and all 10 UpWest stores. Closing sales at these locations across more than 30 states and Washington, D.C., are set to begin soon.
The company revealed that it has received a non-binding letter of intent from a group led by consumer brand acquisition and management firm WHP Global to potentially purchase the majority of its stores and operations. The consortium exploring the deal includes mall operators Simon Property Group and Brookfield Properties.
Express CEO Stewart Glendinning expressed optimism about the proposed transaction, stating that it would provide the company with additional financial resources to support growth and maximize value for stakeholders.
Express operates approximately 530 Express retail and Express Factory Outlet stores in the United States and Puerto Rico, along with around 60 Bonobos Guideshop locations. The company reported nearly $1.2 billion in total debts and $1.3 billion in total assets as of March 2 in its Chapter 11 petition.
The retail landscape has become increasingly competitive, with fast fashion brands like H&M and athleisure companies impacting Express' sales. The pandemic further accelerated changes in consumer behavior, with more people working from home and reducing the demand for office attire.
Express joins a growing list of retailers filing for Chapter 11 this year, reflecting ongoing challenges in the industry. The company has secured $35 million in new financing, subject to court approval, to support its operations during the restructuring process.
Mark Still has been appointed as the new chief financial officer of Express, effective immediately, following the leadership update announced by the company.
