Express and WHP-led consortium in sale deal, all UpWest stores to close

Crisis-hit American retailer Express Inc said on Monday that it has received a non-binding letter of intent for the potential sale of a substantial majority of the company’s retail stores and operations”.

It came from a consortium led by its major business partner WHP Global, as well as a wholly owned indirect subsidiary of Simon Property Group, and Brookfield Properties.

To facilitate the sale process, Express and its subsidiaries have filed voluntary Chapter 11 petitions in the US Bankruptcy Court for the District of Delaware. But it said it’s continuing to serve customers in stores and online across its Express, Bonobos and UpWest brands and “expects to conduct business as usual as the company works to right-size its lease portfolio and operations”.

That right-sizing means it expects to shut around 95 Express retail stores and all of its UpWest stores. The closing sales at affected stores are scheduled to begin on 23 April.

Express has received a commitment for $35 million in new financing from certain of its existing lenders, subject to court approval. And on 15 April, it received $49 million in cash from the Internal Revenue Service related to the CARES Act, the stimulus act passed at the height of the pandemic in 2020.

CEO Stewart Glendinning said: “We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations. We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives. 

“WHP has been a strong partner to the company since 2023, and the proposed transaction will provide us additional financial resources, better position the business for profitable growth and maximise value for our stakeholders.”

He added that the firm has a “strong portfolio of brands and a premier omnichannel platform. Our top priority remains providing our customers with the contemporary styles and value they expect from us.”

Further to that statement about the firm carrying on as usual, aside from the planned store closures, it elaborated saying that Express retail stores and factory outlets, Bonobos Guideshops and UpWest stores are open. 

All of its online channels are accepting orders. And all the company’s brands are fulfilling orders and processing returns. Merchandise return policies remain unchanged, and gift cards and store credits are “currently being redeemed in-store”.

Bonobos is also continuing to serve its premium wholesale customers and customer benefits related to the Express Insider program are “expected to remain the same”.

The company has also made a leadership tweak with Mark Still named as Senior VP and CFO, effective immediately. He’s been interim CFO since November 2023 and Senior VP, Brand Finance and Planning & Allocation since January 2023. 

We’re told he’s “held finance roles of increasing responsibility at Express since 2005 and brings to the CFO role deep insights across all aspects of the company’s finance organization and strategy”.