A massive clothing mall retailer is now considering bankruptcy after sources confirm the company has been consulting with its advisors.
Express has been struggling since the Covid pandemic, reports TheStreet.
However, the company has tried to paint a positive picture of its ability to turn things around.
At least that’s how CEO Stewart Glendinning framed the company’s situation during its third-quarter earnings call.
“After joining the business, a little under three months ago, my focus has been on the pathway to recovering the company’s full profit potential.
This includes accelerating our cost reduction initiatives and launching new ones intended to improve our business performance and liquidity,” he said.
However, those efforts have not been fully successful.
“Our third-quarter sales and diluted loss per share came in below the low end of our outlook ranges.
The macroeconomic environment remains challenging and the consumer and competitive landscapes were highly promotional,” the CEO added.
Express has been consulting with its advisors about a potential bankruptcy filing, but it does have some suitors who may help it through the Chapter 11 process, reports TheStreet.
“WHP Global, a brand manager that owns Express shares as part of a 2023 partnership, is among a handful of firms considering buying the troubled apparel chain as part of Chapter 11 proceedings, said the people, who could not be named discussing private preparations,” Bloomberg reported.
“Other prospective bidders include the private equity firm Sycamore Partners, the people said. Representatives for Sycamore Partners, Express, and WHP declined to comment on the plans.”
A Chapter 11 bankruptcy filing could happen as soon as this week (the week of April 21) but no final decision has been made.
Rapid Ratings, which tracks public financial information for publicly traded companies, sees Express as a high default risk and has warned its customers to begin risk mitigation.
For more news and updates like this, opt-in for push notifications.
Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A massive discount retailer is now closing 35 stores after a direct competitor filed for bankruptcy and shuttered all locations.
Dollar Tree has announced which locations in Ohio will be closing down in the coming months as fans watch for close-out sales.
Shoppers in several towns will no longer have a Dollar Tree or Family Dollar nearby as 35 stores shutter, reports The-Sun.
The national retailer announced that it would close 1,000 locations across the country earlier this month.
Dollar Tree became the parent company of Family Dollar after acquiring it for more than $8 billion almost a decade ago.
The company’s chairman and CEO Rick Dreiling described the current market as a “very challenging macro environment” in a March earnings call.
“To this end, we have initiated a comprehensive review of our Family Dollar portfolio to address underperforming stores that are not aligned with our transformative vision for the company,” he added.
Now, store representatives have named exactly which locations will shut down in Ohio – including 10 in the Cincinnati area alone.
Shoppers can expect the Cincinnati stores at the following locations to shut down this week:
- 3407 Harrison, Cincinnati
- Bridgetown Road, Cincinnati
- Hamilton Avenue, Mount Healthy
- N University Boulevard, Middletown
- Reading Road, Cincinnati
- Riverside Drive, New Miami
- S Breiel Boulevard, Middletown
- S 2nd Street, Ripley
- Waycross Road, Cincinnati
- W Plane Street, Bethel
An estimated 265 employees will be affected by the closures, with 200 facing a possible layoff, according to local Fox affiliate WLWT.
Company representatives told local reporters that employees who wanted to be transferred to other locations were given the possibility.
For more news and updates like this, opt-in for push notifications.
Also Read: Retirees Will Now Receive More Money For Social Security
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
You can also follow me on X (Twitter), Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Frank Nez’s Stock Portfolio
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
About The Author
Leave your thoughts below.
For more news and updates like this, opt-in for push notifications.