By Colin Kellaher
Troubled apparel retailer Express has filed for chapter 11 bankruptcy with plans to shutter a raft of stores and sell the bulk of its remaining locations and operations.
Express on Monday said it has received a non-binding letter of intent from a group led by brand-management firm WHP Global for the potential sale of a substantial majority of its retail stores and operations, adding that it plans to conduct a formal sale process supervised by the bankruptcy court.
The WHP-led group includes mall owners Simon Property Group and Brookfield Properties, which teamed up in 2020 to rescue department-store chain J.C. Penney out of bankruptcy.
The Wall Street Journal in February reported that Express was preparing for a debt restructuring that could include a bankruptcy filing, as the retailer grapples with declining sales.
Express, based in Columbus, Ohio, on Monday said it plans to close about 95 of its namesake retail stores, along with all of its UpWest stores, as part of the bankruptcy process. The company had 600 total stores as of late October, including 529 Express stores, 12 UpWest stores and 49 Bonobos locations.
WHP Global, which owns the Toys 'R' Us and Anne Klein brands, took a stake in Express early last year, and the duo teamed up later in the year to buy menswear brand Bonobos from Walmart.
Express said it has received a commitment for $35 million in new financing from some of its lenders, and that it recently received $49 million in cash from the Internal Revenue Service related to the CARES Act.
Express said it is still serving customers in its stores and online, adding that stores slated for closure will launch closing sales later this week.
The New York Stock Exchange last month delisted shares of Express, which closed Friday at 70 cents in over-the-counter trading. Shareholders are generally wiped out in bankruptcy cases.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
April 22, 2024 06:59 ET (10:59 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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