Bankruptcy Leads Retailer Express Inc. to Shut Down 100 Stores

Fashion retailer Express Inc. has filed for Chapter 11 bankruptcy protection, as announced in a filing with the Securities and Exchange Commission. The filing indicates the closure of over 100 of its 530 locations.

Store Closures and Operational Changes

Express Inc. is set to close approximately 95 Express locations along with all 12 of its UpWest stores. However, the rest of its stores will continue regular operations. Additionally, the company operates Bonobos.

Financial Support and Acquisition Offer

Express Inc. has secured $35M in financing from existing lenders. Meanwhile, a consortium led by WHP Global has expressed interest in acquiring most of the company's retail stores. This offer comes through a nonbinding letter of intent. WHP Global also holds ownership in various brands including Toys R Us and Anne Klein, along with a 7.4% stake in Express. Key players in the consortium include subsidiaries of Simon Property Group and Brookfield Properties.

Market Performance and Management Changes

Following its delisting from the New York Stock Exchange in March due to failing to meet market capitalization requirements, Express Inc. now trades over the counter. Its share value experienced a 10% decrease to 63 cents per share. In terms of financial performance, the company reported a net operating loss of $28.7M for its most recent quarter, down slightly from the same period the previous year. Furthermore, Mark Still has been appointed as the new chief financial officer, having previously served as interim CFO since November.