In a bold move to reorganize its business, fashion retailer Express Inc. has filed for Chapter 11 bankruptcy protection, paving the way for a substantial sell-off of its stores.
Closing Time for Retail Operations
As part of the bankruptcy process, Express has announced the closure of 95 Express retail stores and all of its UpWest stores. These closures will begin with immediate effect at the affected locations. However, Express emphasizes that it remains open for business and will continue to serve customers.
Sale Negotiations Underway
Simultaneously, Express has announced that it has received a non-binding letter of intent from a group led by WHP Global. This group, which also includes mall operators Simon Property Group and Brookfield Properties, is exploring the possibility of acquiring the majority of Express’s stores and operations.
The CEO of Express, Stewart Glendinning, expressed optimism about the potential transaction, stating that WHP has been a valuable partner and that the proposed deal would provide the company with additional resources and a stronger foundation for future growth.
Restructuring Plan and New Leadership
Express has also undertaken some internal changes as part of its restructuring plan. Mark Still has been appointed as the new Chief Financial Officer, effective immediately. The company hopes that these changes will help streamline operations and improve its financial situation.
Store Locations and Financial Snapshot
In California, Express currently operates 61 stores. According to its Chapter 11 petition, the company has approximately .2 billion in total debt and .3 billion in total assets. Express has secured a commitment for million in new financing from existing lenders, which is subject to court approval. This new funding will supplement the million that the company recently received from the Internal Revenue Service.
Industry Challenges and Future Outlook
The fashion retail industry has faced significant challenges in recent years, including competition from online retailers and shifting consumer preferences. Express hopes that the reorganization process will enable it to adapt to these changing market dynamics and emerge as a stronger and more resilient company.
Data sourced from: ktla.com
