Fashion retailer Express Inc has filed for Chapter 11 bankruptcy in the United States and plans to close more than 100 stores. The brand, known for its stylish basics and workwear, has struggled with softening consumer demand in recent years. As part of the restructuring, Mark Still has been appointed as the company’s new CFO.
The retailer, which operates Express, Bonobos, and UpWest brands, announced the bankruptcy filing on Monday. Express operates around 530 retail and outlet locations in the US and Puerto Rico and approximately 12 UpWest stores.
The news comes as the company has worked to combat declining sales and increased price sensitivity among shoppers in the discretionary spending categories.
What the Bankruptcy Filing Means
Express is seeking a buyer, having received a non-binding letter of intent from a consortium led by WHP Global. To facilitate the sale, the company has filed for Chapter 11 bankruptcy protection. This will allow them to continue operating while restructuring their debts and leases on stores.
Express has received financing of $35 million from existing lenders to support operations during the sale process. As part of the restructuring, approximately 95 Express stores and all UpWest stores will close.
ALSO READ. World Earth Day 2024: Images with reflective quotes to share
What Happens Now?
- EXPRESS retail stores, EXPRESS factory outlets, Bonobos Guideshops and UpWest stores are open per their usual hours.
- All of the Company’s online channels, including Express.com, Bonobos.com and UpWest.com, along with all brand apps, are accepting orders.
- All of 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 continuing to serve its premium wholesale customers.
- Customer benefits related to the EXPRESS Insider program are expected to remain the same.
- As part of this process, the Company intends to close approximately 95 EXPRESS retail stores and all UpWest stores. The closing sales at affected stores are scheduled to begin on April 23, 2024.
Stewart Glendinning, CEO of Express, stated: “We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives…Our top priority remains providing our customers with the contemporary styles and value they expect from us.”
New Leadership
Alongside the bankruptcy news, Express announced the appointment of Mark Still as Senior Vice President and Chief Financial Officer, effective immediately. Still has worked at Express since 2005 in various finance roles.
