Express Inc Files for Chapter 11 Bankruptcy Protection amid Retail Struggles
Express Inc, a once-popular retailer known for its casual office attire, has filed for Chapter 11 bankruptcy protection in an effort to restructure its operations and stay afloat in a competitive retail landscape.
The company, based in Columbus, Ohio, and founded in 1980, is seeking to sell the majority of its stores, including its Bonbons and UpWest brands. As part of the bankruptcy filing, Express plans to close 95 of its Express retail stores and all 10 of its UpWest stores, with closing sales set to begin soon.
In a potential lifeline for the struggling retailer, Express announced that it has received a non-binding letter of intent from a group led by consumer brand acquisition and management firm WHP Global to purchase the majority of its stores and operations. The consortium exploring the deal also 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 and position it for profitable growth. The company currently operates about 530 Express retail and Express Factory Outlet stores in the United States and Puerto Rico, as well as online operations for its brands.
The bankruptcy filing comes as Express faces increasing competition from fast fashion retailers like Zara and H&M, as well as the impact of the pandemic on consumer shopping habits. Neil Saunders, a managing director with research firm GlobalData, noted that Express has struggled to differentiate itself in a crowded market and has been hampered by quality issues.
Despite the challenges, Express is not alone in its struggles. Several retailers have filed for Chapter 11 bankruptcy protection this year, with analysts predicting a similar pace of filings compared to last year. Express has secured a commitment for $35 million in new financing, subject to court approval, to support its restructuring efforts.
In addition to the bankruptcy filing, Express announced a leadership update, with Mark Still being named as the new chief financial officer. The company is hopeful that these changes will help it navigate the current retail landscape and emerge stronger in the future.
