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Longtime mall retailer Express filed for Chapter 11 bankruptcy protection on Monday, but a group of investors led by brand management firm WHP Global is looking to save the company by acquiring it.
Express, whose portfolio includes its namesake banner, Bonobos and UpWest, said it will close 95 of its eponymous shops and all of its UpWest doors. Closing sales are expected to begin Tuesday. The company said hours for remaining stores won’t change and it will continue to accept orders and returns as usual.
In a news release, Express said it filed for bankruptcy to “facilitate” a sale process of most of its retail stores and operations to the investor group, which includes WHP, Simon Property Group and Brookfield Properties. It received a nonbinding letter of intent from the investors to buy the assets, and has also secured $35 million in new financing from some of its existing lenders, subject to court approval.
“The proposed transaction will provide Express with additional financial resources, better position the business for profitable growth and maximize value for the Company’s stakeholders,” Express said.
Express also secured $49 million in cash from the IRS related to the CARES Act — a critical influx of liquidity that the company had been waiting on to shore up its balance sheet.
“We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations,” CEO Stewart Glendinning said in a statement.
“We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives,” he added.
