A massive mall retailer is now considering filing for bankruptcy after reporting a net loss of $36.8 million in its fiscal third quarter.
Popular mall retailer Express is facing serious cash issues according to several financial reports.
It’s losses are the same as its $34.4 million net loss in the same quarter a year ago.
The company had nearly $500 million in inventory, but only in $34.6 million in cash and cash equivalents.
However, that’s actually an improvement of $10 million from the same period a year ago, reports TheStreet.
Rapid Ratings, a company which uses publicly-available data to track a company’s financial health, has called the company a “high default risk,” and has warned its customers to “begin mitigating risk.”
“Express has been working to cut its expenses to preserve liquidity,” Rapid Ratings said.
“The company is continuing to conduct a comprehensive review of its business model to identify actions that are expected to meaningfully reduce pre-tax costs and enable a more efficient and effective organization and has engaged external advisors to assist in this effort.
The company is reiterating its stated goal to deliver over $200 million in annualized savings by 2025 versus 2022,” Express shared in its third quarter earnings report.
RapidRatings data, however, does show the company remains at risk for a default, but also had some potentially encouraging remarks.
“Express Inc is situated in our High Risk group, displays weakness in three of our seven performance categories and demonstrates significant underperformance in ROCE.
If current trends persist it would be logical to expect that Express Inc will face serious default risk this coming year although prospects for sustainable efficiency and competitiveness are promising over the medium-term; thus, the outlook is mixed,” the service shared.
The New York Stock Exchange delisted the stock on March 6.
The shares are trading on the OTC Pink Sheets and closed on April 12 at 75 cents, down 15 cents from the day before and down 91% so far this year.
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Also Read: Three Massive Bank Branches Are Now Closing in California
Other Economy News Today
A giant US company now declares an unexpected bankruptcy, resulting in the closure of two of its subsidiaries and mass layoffs.
Major shipping company Universal Logistics Holdings (ULH) will permanently close two of its subsidiaries and lay off 677 employees, notices filed with the State of Michigan said, according to FreightWaves.
The Warren, Michigan company’s subsidiary Universal Dedicated of Detroit will close and lay off 230 truck drivers, while Logistics Insights Corp. will shutter and lay off a total of 447 workers, including 164 warehouse workers, 212 forklift operators, 26 dock workers and 45 clerical employees.
Universal Logistics gave no reason for shutting down the two subsidiaries, reports TheStreet.
Logistics Insights provides value-added logistics solutions to the automotive, aerospace, manufacturing and retail industries, as well as dedicated truckload, expedited and freight forwarding services to customers throughout North America, according to the Universal Logistics website.
Universal Dedicated of Detroit operates an auto parts warehousing and logistics facility. Both subsidiaries are based in Detroit.
Parent company Universal Logistics Holdings, whose subsidiaries employ about 10,000 workers in total, is a holding company which owns subsidiaries that provide a variety of customized transportation and logistics solutions throughout the United States and in Mexico, Canada and Colombia.
Its subsidiaries offer a broad array of supply chain services, including truckload, brokerage, intermodal, dedicated and value-added services.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
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