Express Inc. Files For Chapter 11 Bankruptcy Protection
American fashion retailer, Express Inc., has filed for Chapter 11 bankruptcy protection and is looking to an investor group for aid.
According to CNN, Express Inc. filed for bankruptcy in the Delaware court and already has plans to shut down 95 retail stores across the United States and 10 UpWest stores, starting April 23, 2024. The Associated Press reported that these closures will span across over 30 states and Washington, D.C.; however, apart from these closures, the company is planning to continue running business as usual.
For those unfamiliar with what filing for Chapter 11 bankruptcy entails, the United States Courts website states that “A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.”
The company is working towards a reorganization of its finances. Express’ Investors page reported that effective immediately, Mark Still will be appointed Express’ new Senior Vice President and Chief Financial Officer.
“Mr. Still has served as the Company’s interim CFO since November 2023 and as Senior Vice President, Brand Finance and Planning & Allocation since January 2023,” said the report. “He has 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.”
According to CNN, Neil Saunders, managing director of GlobalData, attributes much of the decline in sales for Express to the desire to work from home, thus limiting the demand for smart, business attire. Saunders said, “The woes at Express are not all of its own making. The formal and smart casual market for both men and women has softened over recent years because of a rise from working from home and the casualization of fashion,” as reported by CNN.
ABC News reported that Express filed for Chapter 11 bankruptcy following a non-binding letter of intent that Express received, allowing for a group led by consumer brand acquisition and management firm WHP Global to potentially purchase most of its stores and operations.
According to CNN, Express CEO Stewart Glendinning has strong faith in WHP as a partner that will help the company in its efforts to regrow their profitability. Glendinning said, “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 maximize value for our stakeholders,” as reported by CNN.
For more information and news updates on company functions amid the closures, visit the Express Investors page.