3 weeks ago
NEW YORK (AP) — Express Inc — erstwhile a trendsetter of casual agency attire that has struggled to compete pinch nan likes of Zara and H&M — has revenge for Chapter 11 bankruptcy protection.
The retailer based successful Columbus, Ohio, and founded successful 1980 besides said Monday it is seeking to waste nan mostly of its stores.
Express, which is nan genitor of nan Bonbons and UpWest brands, is shuttering a fistful of its outlets successful nan process. In an announcement addressing its bankruptcy filing, nan institution said it plans to adjacent 95 of its Express unit stores and each 10 of its UpWest stores.
Closing income astatine locations being unopen down, which were not instantly specified, are group to statesman Tuesday. Beyond these closures, Express said that it expects to behaviour business arsenic usual.
Also connected Monday, Express announced that it received a non-binding missive of intent from a group led by user marque acquisition and guidance patient WHP Global to perchance acquisition nan mostly of its stores and operations. Express said that it had revenge for Chapter 11 protection “to facilitate nan waste process.”
The consortium exploring nan woody besides includes promenade operators Simon Property Group and Brookfield Properties, Express said. WHP, Simon Property and Brookfield did not instantly respond to requests for remark Monday.
Express CEO Stewart Glendinning said WHP “has been a beardown partner” of nan company’s since 2023 — adding that nan projected transaction would springiness Express further financial resources and put it successful a amended position to turn profitably while maximizing worth for stakeholders.
Beyond its UpWest storefronts, nan institution operates astir 530 Express unit and Express Factory Outlet stores successful nan United States and Puerto Rico, successful summation to astir 60 Bonobos Guideshop locations arsenic good arsenic online operations for these brands, according to Express’ website.
Express reported astir $1.2 cardinal successful full debts and $1.3 cardinal successful full assets arsenic of March 2 successful its Chapter 11 petition, which was revenge successful U.S. Bankruptcy Court for nan District of Delaware.
The institution first started arsenic a women’s manner purveyor and past branched retired to men’s wear. It offered must-have items, for illustration denim dresses for those looking for trendy outfits successful nan workplace, astatine affordable prices.
But expanding title from accelerated manner players for illustration H&M, arsenic good arsenic nan emergence of Old Navy and athleisure brands for illustration Lululemon, each wounded nan brand’s sales, said Neil Saunders, a managing head pinch investigation patient GlobalData. Saunders besides noted that nan marque was beset by value issues, and nan pandemic sped up nan inclination of group moving from home, lessening nan request for shoppers to bargain activity outfits.
“Everyone has been nibbling astatine Express from each sides, and Express doesn’t person a defensible proposition,” Saunders said.
Express joins a fistful of retailers filing for Chapter 11 truthful acold this year, including fabrics and trade retailer Joann. And analysts expect nan gait of bankruptcy filings this twelvemonth to beryllium astir nan aforesaid level — adjacent to 24 — arsenic past year, arsenic shoppers hobbled by precocious user indebtedness stay cautious, according to accounting and advisory patient BDO, which tracks unit bankruptcies.
In 2022, only 5 retailers revenge for bankruptcy protection, according to BDO. The number appeared to bespeak a betterment from nan pandemic-induced shop closures that pushed struggling companies complete nan separator successful 2020, erstwhile unit bankruptcies spiked to 35 from 21 nan twelvemonth before, BDO said.
Express said Monday that it has a committedness for $35 cardinal successful caller financing, which is taxable to tribunal approval, from immoderate existing lenders. That would adhd to nan $49 cardinal successful rate that it obtained earlier this period from nan Internal Revenue Service related to nan pandemic-era CARES Act.
Express besides announced a activity update connected Monday. Mark Still will go main financial officer, effective immediately, aft serving arsenic interim CFO since November 2023, nan institution said.
