NEW YORK — In a significant development in the retail industry, fashion giant Express has announced its filing for Chapter 11 bankruptcy. The company also revealed plans to shut down over 100 of its stores, as per the statement released on Monday.
Express, a renowned retailer with a diverse portfolio that includes brands like Bonobos and UpWest Express, has declared assets and liabilities ranging between $1 billion and $10 billion. This information was disclosed in a document submitted to the bankruptcy court in Delaware.
In a simultaneous announcement, the company introduced Mark Still as its new CFO, effective immediately. Still has been serving as the interim CFO since November 2023.
As a part of the bankruptcy proceedings, Express will be closing down approximately 95 of its retail stores and all UpWest stores, starting Tuesday. However, the company did not provide any details regarding the specific locations of these stores.
Express currently operates around 530 retail and Express Factory Outlet stores across the United States, including Utah, and Puerto Rico. Additionally, it runs about 12 UpWest retail stores, as per the information available on its website.
Established in 1980, Express has been grappling with a decline in consumer demand, attributed to a slowdown in spending patterns and heightened price sensitivity in discretionary categories.
Despite the bankruptcy filing, Express has managed to secure a commitment for $35 million in fresh financing from some of its existing lenders.
The multi-brand fashion retailer expressed its intention to continue business operations as usual while it initiates a court-supervised process to facilitate a formal sale process.
On Monday, Express also announced that it received a non-binding letter of intent from a consortium led by WHP Global for the sale of a substantial majority of its retail stores and operations.
WHP Global, a brand management firm that owns Toys “R” Us and fashion labels such as Anne Klein, acquired a 7.4% stake in Express last year.
I disagree, sad to see a popular retailer struggling.
Disagree, sad to see a popular retailer struggling. Will miss their affordable fashion options.
Disagree, sad to see a popular retailer struggling. #Express