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Apparel retailer Express Inc. connected Monday revenge for Chapter 11 bankruptcy protection.
Express said successful a property merchandise that it was "continuing to service customers successful stores and online crossed its Express, Bonobos and UpWest Brads and expects to behaviour business arsenic accustomed arsenic nan institution useful to right-size its lease portfolio and operations."
Brand guidance patient WHP Global and others connected Monday sent Express a non-binding missive of intent to perchance bargain a "substantial majority" of its operations. The bankruptcy filing is expected to thief that process, according to nan retailer.
"We are taking an important measurement that will fortify our financial position and alteration Express to proceed advancing our business initiatives," Express CEO Stewart Glendinning said. "WHP has been a beardown partner to nan institution since 2023, and nan projected transaction will supply america pinch further financial resources, amended position nan business for profitable maturation and maximize worth for our shareholders."
An Express shop astatine American Dream connected March 7, 2023 successful East Rutherford, New Jersey. (Eugene Gologursky/Getty Images for Express, Inc. / Getty Images)
WHP Global, which owns Toys "R" Us and manner labels specified arsenic Anne Klein, took a 7.4% liking successful Express past year.
RED LOBSTER CONSIDERING BANKRUPTCY FILING: REPORT
Express said immoderate of its existent lenders person committed to giving it $35 cardinal worthy of caller financing. That will adhd to nan $49 cardinal nan Internal Revenue Service sent past week "related to nan CARES Act," according to nan company.
An Express shop astatine American Dream connected March 7, 2023 successful East Rutherford, New Jersey. (Eugene Gologursky/Getty Images for Express, Inc. / Getty Images)
The bankruptcy will besides impact immoderate 95 Express locations and each UpWest stores permanently shutting their doors. It created nan UpWest marque successful 2019.
RITE AID TO CLOSE 53 MORE STORES AMID BANKRUPTCY PROCEEDINGS
Its overall unit footprint includes astir 530 stores nether nan Express marque positive astir 60 Bonobos and 12 UpWest locations.
Its soon-to-shutter stores will statesman closing income connected Tuesday.
In its bankruptcy petition, nan retailer estimated a $1 cardinal to $10 cardinal scope for its assets. Estimated liabilities were reported arsenic nan same.
99 CENTS ONLY CHAIN CLOSING ALL 371 LOCATIONS NATIONWIDE
Meanwhile, it pegged its number of creditors astatine 5,001-10,000, according to nan filing.
In precocious November, Glendinning said Express was focusing connected "customer engagement, operating excellence, costs simplification and inventory management" to thrust betterment successful nan company’s performance.
He besides said astatine nan clip nan institution aimed to prevention $200 cardinal by 2025.
Reuters contributed to this report.
