Clothing retail chain Express has filed for Chapter 11 bankruptcy and announced plans to close 95 of its stores, the company reported Monday. The company reported total debt of nearly $1.2 billion and total assets of $1.3 billion in its Chapter 11 petition filed in the U.S. Bankruptcy Court for the District of Delaware.
Express also secured a commitment of $35 million in new financing from existing lenders, subject to court approval. This is in addition to the $49 million in cash obtained earlier this month from the Internal Revenue Service.
Liquidation sales at Express will begin on Tuesday at the 95 stores set to close, including all UpWest branches. The company operates approximately 530 Express and Express Factory Outlet retail stores in the U.S. and Puerto Rico, along with Bonobos Guideshop locations and UpWest stores.
Express has seen declining revenue in recent years, with a drop of almost 10% compared to the same period in 2019. Neil Saunders, CEO of GlobalData, attributes this decline to the changing market trends and Express’ failure to adapt.
As part of the restructuring, Express intends to sell most of its stores and operations to WHP Global, a firm specialized in brand management. Mall owners Simon Property Group and Brookfield Properties will also acquire Express’s operations.
Other retailers considering bankruptcy or restructuring include Red Lobster and The Body Shop, which recently announced plans to close all its stores in the US.