Apparel Retailer Express Inc. To Close 100 Stores In Bankruptcy
Fashion retailer Express Inc. has filed for Chapter 11 bankruptcy protection, according to a filing with the Securities and Exchange Commission on Monday, and says it will close more than 100 of its 530 locations.
The company said it is closing about 95 of its Express locations and all 12 of its UpWest stores, while the remainder of its locations will remain open for normal business. The retailer also operates Bonobos. Express has received a commitment for $35M in financing from some of its existing lenders.
A consortium led by WHP Global has offered, via a nonbinding letter of intent, to acquire most of the company's retail stores, and the bankruptcy process will facilitate that deal, according to the filing. WHP also owns the Toys R Us brand, fashion brands such as Anne Klein and a 7.4% stake in Express, Reuters reported. The consortium includes subsidiaries of Simon Property Group and Brookfield Properties.
In March, Express was delisted from the New York Stock Exchange for failing to maintain a market capitalization of at least $15M over 30 consecutive trading days. The company trades over the counter. Its value dropped about 10% on Monday morning to 63 cents per share.
The company reported a net operating loss of $28.7M for the third quarter, the most recent quarter it reported, down slightly from a loss of $29.5M in Q3 2022.
Express also named Mark Still its new chief financial officer. He has been the company's interim CFO since November.
