Fashion retailer Express filed for Chapter 11 bankruptcy protection Monday, with the mall major saying it plans to sell the majority of its stores.
Express, based in Columbus, Ohio, is also the parent company of the BonBon and UpWest brands, and is closing some operations in the process. In announcing the bankruptcy filing, the company said it plans to close 95 Express retail stores and all UpWest stores.
Closing sales at these locations were not immediately disclosed, but are expected to begin on Tuesday.
Beyond these closures, Express said it “plans to conduct business as usual.”
Also on Monday, Express announced that it had received a non-binding letter of intent from a group led by WHP Global to potentially acquire the majority of its stores and operations.
Express said it filed for Chapter 11 protection “to facilitate the sales process.”
The consortium considering the deal also includes shopping mall operators Simon Property Group and Brookfield Properties, Express said. The Associated Press reached out to WHP, Simon Properties and Brookfield for comment Monday.
Express CEO Stewart Glendinning said in a prepared statement that WHP has been a “strong partner” for the company since 2023, adding that the proposed transaction would give Express additional It added that the financial resources will “put the business in a better position for profitable growth” while maximizing enterprise value. Person concerned.
According to Express’ website, the company currently operates approximately 530 Express retail and Express Factory Outlet stores in the United States and Puerto Rico, as well as approximately 60 Bonobos Guideshop stores, 12 UpWest stores, and online operations for those brands. are also going there.
Express reported total debt of approximately $1.2 billion and total assets of approximately $1.3 billion in its Chapter 11 filing in U.S. Bankruptcy Court for the District of Delaware.
The company announced Monday that it has received commitments from some of its existing lenders for $35 million in new financing, which is subject to court approval.
That’s in addition to $49 million in cash Express received from the Internal Revenue Service earlier this month in connection with the pandemic-era CARES Act.
Express also released a management update on Monday. According to the company, Mark Still will serve as interim CFO starting in November 2023, and will immediately become chief financial officer.
