Express, a US-based apparel retailer, has commenced bankruptcy proceedings to facilitate its self-sale.
In accordance with a statement released on the 22nd (local time), Express has received a proposal from brand manager WHP Global, in conjunction with mall operators Simon Property Group and Brookfield Property, to acquire the majority of the company’s operations and stores and streamline the sale process.
Moreover, Express intends to close 95 out of its over 500 retail stores, focusing on closures in the West region.
WHP Global, the proprietor of brands such as Toys R Us, Isaac Mizrahi, and Rag & Bone, holds a 60% stake in the Express brand through a joint venture established in 2023.
Court documents submitted in Delaware delineate liabilities and assets ranging from $1 billion to $10 billion.
In light of this, Express disclosed that it had secured $35 million in new funding from existing lenders to support its bankruptcy proceedings and received $49 million related to the CARES Act from the IRS in April.
With a history of over 40 years, Express was once a prime destination for millennials seeking affordably priced office wear and casual attire.
However, in recent years, it has faced challenges competing with emerging online brands and adapting to changing consumer preferences, resulting in a sharp decline in revenue.
Conversely, Express announced hiring external consultants shortly after agreeing with WHP Global last year to acquire the men’s clothing brand Bonobos to assist in cost-cutting measures just weeks after the agreement was reached.
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