Express Inc seeks bankruptcy, plans to close more than 100 stores
Fashion retailer Express Inc announced today that it has filed for Chapter 11 bankruptcy protection and plans to close more than 100 of its stores. The company, known for its brands Express, Bonobos and UpWest, announced in its application to the bankruptcy court in Delaware that both its assets and liabilities are between 1 billion and 10 billion dollars.
In a strategic move accompanying the bankruptcy announcement, Express has appointed Mark Still as its new Chief Financial Officer (CFO), effective immediately. Still had held the position on an interim basis since November 2023.
Store closures will begin Tuesday and include approximately 95 Express retail locations and all UpWest stores. However, the specific locations of the stores that will be closed have not been announced. As stated on the company’s website, Express currently operates approximately 530 retail and Express Factory Outlet stores in the United States and Puerto Rico, as well as approximately 12 UpWest retail stores.
Founded in 1980, the retailer has faced challenges such as weakening consumer demand due to changing spending habits and increased price sensitivity in non-essential goods categories.
To assist with the financial restructuring, Express secured $35 million in new financing from some of its existing lenders. The company aims to continue normal operations throughout the bankruptcy process and is in the midst of a court-supervised sale process.
Additionally, Express announced that it has received a non-binding letter of intent from a consortium led by WHP Global for the acquisition of a significant portion of its retail stores and operations. WHP Global, a brand management firm that owns other fashion brands such as Toys “R” Us and Anne Klein, acquired a 7.4% stake in Express last year.