Famous US brand Express Factory Outlet goes bankrupt, more than 100 stores to be liquidated
In the wake of the coronavirus pandemic, renowned American clothing brand Express Factory Outlet has announced its filing for Chapter 11 bankruptcy. The company cited insurmountable financial problems, including a debt of billions of dollars with high interest rates, as the main reasons behind the decision.
Express Factory Outlet, founded in the 1980s, stated in a recent press release that they have received a commitment of $35 million in new financing from existing lenders, subject to court approval. Additionally, the company disclosed that they have received $49 million in cash from the Internal Revenue Service under the CARES Act.
As a result of the bankruptcy filing, nearly 100 stores will be closed in the coming days, with 95 retail stores and 10 Up West stores being first on the list. However, there may be a silver lining for the brand, as WHP Global has expressed interest in acquiring the majority of the stores and chain operations. The decision to file for Chapter 11 is expected to facilitate the sales process.
The closure of Express Factory Outlet stores is a reflection of the widespread financial challenges faced by companies globally in the aftermath of the pandemic. It remains to be seen how this iconic brand will navigate through these troubled waters and whether the proposed acquisition by WHP Global will come to fruition.