Express Inc., the parent company of Express, Bonobos, and Upwest, has filed for Chapter 11 bankruptcy protection. The company plans to sell the majority of its stores as it restructures its operations.
As part of the bankruptcy process, Express will close 95 of its Express retail stores and all UpWest stores. Closing sales at these locations are set to begin on Tuesday. Despite the closures, Express says it intends to continue operating its business as usual.
The company has also received a non-binding letter of intent from a group led by WHP Global to potentially purchase the majority of its stores and operations. The consortium also includes mall operators Simon Property Group and Brookfield Properties.
Express’s CEO, Stewart Glendinning, expressed confidence in the proposed transaction, stating that it would provide additional financial resources and better position the business for future growth.
At the time of the bankruptcy filing, Express operated approximately 530 Express retail and Express Factory Outlet stores in the United States and Puerto Rico, along with 60 Bonobos Guideshop locations and 12 UpWest stores. The company reported nearly $1.2 billion in total debts and $1.3 billion in total assets in its Chapter 11 petition.
To facilitate the sale process, Express has secured a commitment for $35 million in new financing from existing lenders, subject to court approval. This is in addition to the $49 million in cash the company received from the Internal Revenue Service earlier this month related to the CARES Act.
In a leadership update, Mark Still has been appointed as the new chief financial officer, effective immediately.
