Amidst declining sales and mounting debt, Express, a well-known mall retailer, filed for Chapter 11 bankruptcy protection. However, there is hope for the company as a group of investors led by WHP Global is stepping forward to acquire it.
Express plans to close 95 of its namesake stores and all its UpWest locations, with closing sales expected to commence shortly. Despite the closures, the company’s e-commerce operations and remaining physical stores will continue as usual, accepting orders and returns.
Express’s CEO, Stewart Glendinning, expressed optimism, saying that the company is making progress in refining its product offerings, connecting with customers, and optimizing operations. He believes the proposed transaction will provide Express with the necessary financial resources and strategic positioning to drive profitable growth and create value for stakeholders.
The impending acquisition by WHP Global and its partners, Simon Property Group and Brookfield Properties, has been met with a nonbinding letter of intent. Additionally, Express secured $35 million in new financing from existing lenders, subject to court approval. These developments provide a glimmer of hope for the company’s recovery.
Express’s challenges stem from declining revenue, a trend exacerbated by the rise of work-from-home culture and the casualization of fashion. However, the bankruptcy process will grant Express relief from burdensome leases and enhance its appeal to potential buyers.
Kirkland & Ellis, a prominent law firm with experience in guiding bankrupt retailers, is representing Express. Moelis & Co. and M3 Partners are serving as the investment banker and financial advisor, respectively.
