Express Inc, a trendsetter of casual office attire founded in 1980, has filed for Chapter 11 bankruptcy protection due to struggles competing with fast fashion brands like Zara and H&M. The Columbus, Ohio-based retailer, which is the parent company of Bonbons and UpWest, also announced plans to sell the majority of its stores and close 95 Express retail stores and all 10 UpWest stores across more than 30 states and Washington, D.C.
Despite the closures, Express expects to conduct business as usual in its remaining stores. The company received a non-binding letter of intent from a group led by WHP Global, along with mall operators Simon Property Group and Brookfield Properties, to potentially purchase the majority of its stores and operations.
Express CEO Stewart Glendinning believes this proposed transaction would provide additional financial resources and help the company grow profitably while maximizing value for stakeholders.
Express, which started as a women’s fashion purveyor before expanding to men’s wear, offered trendy and affordable outfits for the workplace.
However, increasing competition from fast fashion players, the rise of Old Navy and athleisure brands, quality issues, and the pandemic-induced trend of working from home have all contributed to the brand’s declining sales.
The retailer joins a handful of other companies filing for Chapter 11 bankruptcy protection this year, with analysts expecting the pace of filings to be similar to last year’s level of around 24.
Express reported nearly $1.2 billion in total debts and $1.3 billion in total assets as of March 2 in its bankruptcy petition.
To help with its financial situation, Express has secured a commitment for $35 million in new financing from existing lenders, subject to court approval, in addition to the $49 million in cash it obtained earlier this month from the Internal Revenue Service related to the CARES Act. The company also announced a leadership update, with Mark Still becoming the chief financial officer, effective immediately.
The Associated Press contributed to this article.