Express, a clothing retailer, announced that it filed for Chapter 11 bankruptcy before the Bankruptcy Court for the District of Delaware. Likewise, it detailed the decision was made to facilitate the acquisition process after a company showed interest in buying a substantial majority of the company's stores and retail operations.
"Express, Inc. (NYSE: EXPR) (“Express” or the “Company”) today announced that it has received a non-binding letter of intent from a consortium led by WHP Global (“WHP”), and participants including a wholly owned indirect subsidiary of Simon Property Group, L. P. (“Simon”) and Brookfield Properties (“Brookfield”) for the potential sale of a substantial majority of the Company’s retail stores and operations. To facilitate the sale process, Express and its subsidiaries have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware," Express explained in a statement published on its official website.
'Express is continuing to serve customers in stores and online'
Express indicated that it has received a commitment of $35 million in new financing from some of its existing lenders, subject to court approval. Additionally, on April 15, 2024, the company received $49 million in cash from the Internal Revenue Service as part of the CARES Act.
Likewise, the company explained that as part of this process, it intends to close approximately 95 Express retail stores and all UpWest stores. Liquidation in the affected stores is scheduled to begin on April 23.
"Express is continuing to serve customers in stores and online across its EXPRESS, Bonobos and UpWest brands and expects to conduct business as usual as the Company works to right-size its lease portfolio and operations," the company said.
The Company has filed a number of customary motions seeking court authorization to support its operations, including the payment of employee wages and benefits without interruption and the continuation of customer loyalty programs. The Company expects to receive court approval for these requests shortly. The Company looks forward to working with its vendor and supplier partners to ensure a continued successful enterprise for the benefit of the Company’s customers and the communities it serves. The Company expects to have sufficient liquidity to support the business during the court- supervised sale process.
