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Chapter 11 Bankruptcy Filed by U.S. Fashion Retailer Express
Express, a prominent U.S. fashion retailer, has recently filed for Chapter 11 bankruptcy protection and announced plans to close more than 100 stores as part of a strategic overhaul. The company disclosed this development in a statement released on Monday.
Financial Situation and Restructuring
Express, which owns well-known brands such as Bonobos and UpWest, reported liabilities ranging from $1 billion to $10 billion in a filing submitted to the U.S. Bankruptcy Court for the District of Delaware. To address its financial challenges, the Ohio-based retailer secured a commitment for $35 million in new financing from existing lenders, pending court approval.
The retailer intends to utilize the Chapter 11 bankruptcy process to facilitate a potential sale of the majority of its assets and operations. Discussions regarding the sale were initiated following the receipt of a non-binding letter of intent from WHP Global, a brand manager, in conjunction with mall landlords Simon Property Group and Brookfield Properties.
Stewart Glendinning, Express’s CEO, voiced optimism about the proposed transaction with WHP Global, emphasizing the additional financial resources that would help fortify the company’s foundation for sustainable growth.
Retail Store Closures
Express outlined plans to shutter approximately 95 of its Express retail outlets along with all 12 UpWest stores, starting on Tuesday, April 23. Although the company did not specify the precise locations affected, it assured customers that operations would continue without interruption, with all stores maintaining their regular operating hours.
Industry Challenges and Management Changes
The news of Express’s bankruptcy filing did not catch industry observers off guard, as the retailer has encountered difficulties in engaging with modern consumers. Earlier reports in April had hinted at the possibility of bankruptcy proceedings. Moreover, the company faced delisting from the New York Stock Exchange back in March, underscoring its financial struggles.
In a separate announcement, Express appointed Mark Still as its new Chief Financial Officer with immediate effect. Still had been serving as the interim CFO since November 2023, bringing his financial expertise to bear on the company’s strategic realignment efforts.
Despite the challenges ahead, Express remains committed to serving its loyal customer base and navigating through this period of transition with a focus on long-term sustainability and growth.
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