Columbus, Ohio-based apparel retailer Express said Monday it has filed for bankruptcy and plans to close about 100 of its 500 retail stores.
Express reported total debts of about $1.2 billion and total assets of $1.3 billion in its Chapter 11 petition filed in U.S. Bankruptcy Court in Delaware.
The company said Monday that it has received commitments of $35 million in new financing from certain existing lenders, subject to court approval. It will add $49 million to the cash express it received from the IRS earlier this month related to the pandemic-era CARES Act.
Express, a purveyor of affordable clothing for more than 40 years, said in a statement that the discounts will begin Tuesday at about 95 of its stores, including all Upwest stores. statement.
According to the report, the company operates approximately 530 Express retail stores and Express factory outlet stores in the United States and Puerto Rico, in addition to approximately 60 BonBose Guideshop stores, a dozen Upwest stores and online operations for these brands. Reach’s website.
GlobalData’s managing director Neil Saunders noted that Express’s revenue had fallen sharply in recent years, with sales down nearly 10% compared to the same period in 2019 in the company’s latest results.
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Sanders said the company’s problems aren’t entirely of its own making. “The formal and dress-casual market for men and women has softened in recent years due to work-from-home and the rise of fashion casual. This puts Express firmly on the wrong side of the trend and, in our view, the chain’s efforts to adapt are too low,” he said.
Still, poor decision-making made the problem worse, Sanders said. He also noted the fashion retailer’s preference for “someone from the meat industry as CEO.” The disclosure revealed that former Tyson Foods executive Stuart Glendinning was appointed to lead the company in September.
Express plans to sell the business and most of its store brands to management company WHP Global and mall owners Simon Property Group and Brookfield Properties using the Chapter 11 process.
New York-based WHP Global’s portfolio includes Toys “R” Us, Isaac Mizrahi and Rag & Bone. It also owns 60% of the Express brand through a joint venture formed last year.
Express said it is working with A&G Realty Partners on an ongoing review of its store footprint.
The company took a similar step earlier this month when it filed for bankruptcy 99 cents store And Hobby Chain Joan March.
——Associated Press reports.
Kate Gibson
Kate Gibson is a reporter for CBS MoneyWatch in New York.
