Fashion retailer Express Inc. has filed for Chapter 11 bankruptcy protection as of April 22nd, 2024. The Ohio-based company, known for its trendy casual office attire, has been struggling to compete with fast-fashion giants like Zara and H&M in recent years. As part of the bankruptcy process, Express plans to close 95 of its retail stores across more than 30 states and Washington, D.C., as well as all 10 locations of its subsidiary brand, UpWest.
Express, which was founded in 1980, has faced numerous challenges in adapting to the changing retail landscape. Neil Saunders, managing director of GlobalData, noted that the brand has been beset by quality issues and the shift towards remote work has lessened the demand for office clothing. "Everyone has been nibbling at Express from all sides, and Express doesn't have a defensible proposition," Saunders commented.
The company has received a non-binding letter of intent from a group led by brand management firm WHP Global, which owns a 60% stake in Express through a joint venture formed last year. The potential acquisition would include the majority of Express's stores and operations. To facilitate the sale process, Express filed for bankruptcy in Delaware.
Despite the closures, Express stated that it will continue to serve customers through its remaining stores and online platforms across its Express, Bonobos, and UpWest brands. The company expects to conduct business as usual while working to optimize its lease portfolio and operations.
Closing sales at the affected Express locations are set to begin on Tuesday, April 23rd. In Ohio, two stores will be closing: 7540 Bales Street in Liberty Township and 5001 Monroe in Toledo. California will see 16 store closures, with the majority located in Southern California. Texas will bid farewell to five Express stores, including locations in Corpus Christi, Dallas, San Antonio, College Station, and Cedar Hill.
The bankruptcy filing also revealed that Express has secured $35 million in new financing from its existing lenders, subject to court approval, and $49 million in cash from the Internal Revenue Service related to the CARES Act. Additionally, Mark Still, who has been serving as interim CEO since November 2023, has been appointed as the company's new CFO, effective immediately.
As Express navigates this challenging period, CEO Stewart Glendinning remains optimistic about the company's future. "We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations," Glendinning stated. "We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives."
The bankruptcy filing and store closures highlight the ongoing struggles faced by traditional brick-and-mortar retailers in the face of changing consumer preferences and the rise of e-commerce. Customers can continue to shop online at Express's website, regardless of their location, as the company works to restructure and emerge from bankruptcy.
