Express Inc. Files for Chapter 11 Bankruptcy, Plans to Close Stores

Columbus-based fashion retailer, Express Inc., has recently filed for Chapter 11 bankruptcy protection. The company, which is also the parent company of Bonbons and Upwest brands, is looking to sell the majority of its stores, resulting in the closure of several locations.

Express has announced its plan to close 95 of its retail stores under the Express brand, as well as all UpWest stores. Although the specific locations were not immediately disclosed, closing sales at these stores are set to begin on Tuesday.

Despite these closures, Express stated that it intends to continue its operations "as usual" for the remaining stores. This includes the 61 Express locations currently present in California.

In addition to the bankruptcy filing, Express revealed that it has received a non-binding letter of intent from a consortium led by WHP Global. The group, which includes mall operators Simon Property Group and Brookfield Properties, may potentially purchase the majority of Express' stores and operations. The company's decision to file for Chapter 11 protection was made to facilitate the sale process.

Express CEO, Stewart Glendinning, expressed optimism about the potential transaction, stating that WHP Global has been a strong partner since 2023. He believes that this proposed deal will provide the company with additional financial resources and position it for profitable growth, ultimately maximizing value for stakeholders.

Currently, Express operates around 530 Express retail and Express Factory Outlet stores across the United States and Puerto Rico. It also has approximately 60 Bonobos Guideshop locations, 12 UpWest stores, and online operations for these brands.

Express reported $1.2 billion in total debt and $1.3 billion in total assets in its Chapter 11 petition, which was filed in U.S. Bankruptcy Court for the District of Delaware.

To support its operations during this process, Express has secured a commitment for $35 million in new financing, subject to court approval, from some of its existing lenders. This financing comes in addition to the $49 million in cash obtained from the Internal Revenue Service earlier this month, in relation to the pandemic-era CARES Act.

In a leadership update, Express also announced that Mark Still will become the chief financial officer, effective immediately. Still had been serving as the interim CFO since November 2023.

Express' bankruptcy filing and store closure plans reflect the challenges faced by retailers in an evolving industry. The impact of this decision on employees and customers remains to be seen, as the company looks towards a potential sale and restructuring of its operations.