Retailer Express files for Chapter 11 bankruptcy protection
WHP Global, other investors explore potential acquisition of Express assets
Apparel retailer Express Inc. on Monday filed for Chapter 11 bankruptcy protection.
Express said in a press release that it was "continuing to serve customers in stores and online across its Express, Bonobos and UpWest Brads and expects to conduct business as usual as the company works to right-size its lease portfolio and operations."
Brand management firm WHP Global and others on Monday sent Express a non-binding letter of intent to possibly buy a "substantial majority" of its operations. The bankruptcy filing is supposed to help that process, according to the retailer.
"We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives," Express CEO Stewart Glendinning said. "WHP has been a strong partner to the company since 2023, and the proposed transaction will provide us with additional financial resources, better position the business for profitable growth and maximize value for our shareholders."
An Express store at American Dream on March 7, 2023 in East Rutherford, New Jersey. (Eugene Gologursky/Getty Images for Express, Inc. / Getty Images)
WHP Global, which owns Toys "R" Us and fashion labels such as Anne Klein, took a 7.4% stake in Express last year.
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Express said some of its current lenders have committed to giving it $35 million worth of new financing. That will add to the $49 million the Internal Revenue Service sent last week "related to the CARES Act," according to the company.
An Express store at American Dream on March 7, 2023 in East Rutherford, New Jersey. (Eugene Gologursky/Getty Images for Express, Inc. / Getty Images)
The bankruptcy will also involve some 95 Express locations and all UpWest stores permanently shutting their doors. It created the UpWest brand in 2019.
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Its overall retail footprint includes about 530 stores under the Express brand plus roughly 60 Bonobos and 12 UpWest locations.
Its soon-to-shutter stores will begin closing sales on Tuesday.
Express Inc
In its bankruptcy petition, the retailer estimated a $1 billion to $10 billion range for its assets. Estimated liabilities were reported as the same.
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Meanwhile, it pegged its number of creditors at 5,001-10,000, according to the filing.
In late November, Glendinning said Express was focusing on "customer engagement, operating excellence, cost reduction and inventory management" to drive improvement in the company’s performance.
He also said at the time the company aimed to save $200 million by 2025.
Reuters contributed to this report.