By
Bloomberg
Published
Apr 22, 2024
Express Inc., the clothing retailer that rose to prominence through its business casual apparel, filed for bankruptcy after a turnaround effort fell short.
Express has received a non-binding letter of intent from a consortium led by WHP Global for the potential sale of a substantial majority of its retail stores and operations, according to a separate company statement as it filed a Chapter 11 petition in Delaware early Monday. Participants include a wholly owned indirect subsidiary of Simon Property Group and Brookfield Properties.
The court filing listed liabilities and assets of $1 billion to $10 billion for each. The restructuring process protects Express from creditors while it works out a way to repay them.
The retailer secured $35 million in new financing from lenders, on top of the $49 million received from the Internal Revenue Service related to the CARES Act in April.
“We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives,” Stewart Glendinning, chief executive officer said in the statement.
Express has also named Mark Still as chief financial officer, effective immediately. Still has served as the company’s interim CFO since November 2023. The company anticipates adequate liquidity to sustain operations during the court-supervised sale process.
The publicly traded company has been fighting downward-trending revenue and thinning earnings for years. Last May, Express said it hired external advisers to help cut costs just weeks after agreeing to buy men’s apparel brand Bonobos Inc. alongside WHP Global.
Columbus, Ohio-based Express operated more than 500 stores in the US as of late 2023.
The case is Express Inc., 24-10831, US Bankruptcy Court for the District of Delaware.