Express closing more than 100 stores as clothing retailer files for bankruptcy protection
Mark WilliamsFinancially struggling retailer Express said Monday morning that it has filed for bankruptcy protection and that it plans to close 95 of its Express stores and all of its UpWest stores starting Tuesday.
Express operates about 600 stores under the names Express, 60 Bonobos Guideshop and UpWest.
The company says it continues to serve customers in stores and online across its brands and will conduct business as usual.
It did not specify the locations of the stores it is closing.
The retailer, known for office clothes, has struggled in recent years, and the company has acknowledge missteps in its merchandise strategy.
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The company's shares closed at 70 cents on Friday, and traded higher on Monday after the announcement.
Express also said it has received an offer for the potential sale of most of its stores from a group led by WHP Global, which owns several brands, including Toys "R" Us.
The bankruptcy filing estimates liabilities from $1 billion to $10 billion.
The company's brands continue to fill orders and process returns. The company said merchandise return policies remain the same, and gift cards are currently being redeemed in-stores.
“We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations,” Stewart Glendinning, the company's CEO, said in a statement. “We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives."
He said the proposed transaction with WHP will provide additional financial resources and position the business for profitable growth.
The potential sale to WHP means Express wants to keep the brand alive, said Sarah Foss, global head of legal at Debtwire, an Ion Analytics company. Also, Express is using bankruptcy to reduce its footprint.
"Express is hoping to continue with business as usual in bankruptcy and avoid the fate of other recent retail debtors which either filed for bankruptcy to liquidate (99 Cents Only Store) or lingered in bankruptcy for a prolonged period of time before ultimately liquidating as seen in the cases of Bed Bath & Beyond, Christmas Tree Shops, and Soft Surroundings," she said in an email.
mawilliams@dispatch.com
@BizMarkWilliams