Express Inc., a once-dominant force in casual office wear, has succumbed to the challenges of the retail landscape and filed for Chapter 11 bankruptcy protection. The Columbus, Ohio-based retailer, which also operates the Bonbons and UpWest brands, announced plans to sell the majority of its stores as part of its restructuring efforts.
In a statement released on Monday, Express revealed plans to shutter 95 Express retail outlets and all 10 UpWest stores, including locations in Santa Clara (Valley Fair Mall) and Emeryville (Bay Street). Closing sales at the affected locations spanning over 30 states and Washington, D.C., are scheduled to commence on Tuesday.
Beyond these closures, Express emphasized that it intends to continue operating normally. The company disclosed that it has secured a non-binding letter of intent from a consortium led by consumer brand acquisition and management firm WHP Global, alongside mall operators Simon Property Group and Brookfield Properties, for the potential acquisition of its stores and operations. Express stated that it filed for Chapter 11 protection to facilitate a smoother sale process.
Express CEO Stewart Glendinning expressed optimism about the proposed transaction, highlighting WHP’s history as a supportive partner since 2023. Glendinning believes the deal will provide Express with additional financial resources and position it for profitable growth while maximizing stakeholder value.
The company’s financial situation, as reported in its Chapter 11 petition filed in U.S. Bankruptcy Court for the District of Delaware, indicates total debts of nearly $1.2 billion and total assets of $1.3 billion as of March 2. Express initially established itself as a purveyor of women’s fashion before expanding into menswear. It gained popularity by offering affordable, stylish items such as denim dresses for the workplace.
However, Express faced an uphill battle against fast fashion giants like H&M and the rise of athleisure brands like Lululemon. These competitors chipped away at the brand’s market share, compounded by quality issues and the pandemic-induced shift toward remote work, diminishing the demand for traditional office attire.
Neil Saunders, managing director of research firm GlobalData, commented that Express lacked a strong competitive edge amid the intense competition from various fronts. Express joins a growing list of retailers that have sought Chapter 11 protection this year, including Joann. Industry experts anticipate that the pace of bankruptcy filings will remain consistent with last year, around 24, as consumers remain cautious amidst concerns over high consumer debt.
Express has secured a commitment for $35 million in new financing, subject to court approval, from existing lenders. This would supplement the $49 million in cash it received earlier this month from the Internal Revenue Service as part of the pandemic-era CARES Act.
In other company news, Express announced the appointment of Mark Still as its new chief financial officer, effective immediately. Still has served as interim CFO since November 2023.
