A massive mall retailer is now discussing bankruptcy with its lenders after its debt ballooned to a whopping $274 million.
Popular mall retailer Express has been talking to lenders about raising the cash it would need for a Chapter 11 bankruptcy, according to a report from Bloomberg.
The company could file for bankruptcy as soon as next week, but no final decision has been made, reports TheStreet.
At the close of its third quarter, the retailer had cash and cash equivalents of $34.6 million and $274 million in debt.
That was a $40 million increase in debt over a year.
Despite the company’s cash position and debt, Rapid Ratings, which tracks the financial health of public companies, sees Express as being in a relatively good position.
“Express Inc. demonstrates adequate performance in leverage and earnings performance but some weakness in liquidity.
Although mixed, this performance is sufficient for the company to be assigned a Low-Risk rating,” the website reported.
However, the rating service did issue a warning.
“This period includes an abnormal item.
When the rating for this period is simulated with the abnormal item excluded, the company’s health is significantly worse suggesting the line item is having a meaningful effect on the rating for this period,” according to the service.
Express leadership issued the expected comments on its future in the news release on being delisted by the NYSE.
“Over the past several months, we have taken decisive steps to position Express for the long term, including implementing a series of cost-saving initiatives and streamlining our process to enhance operational efficiency,” Chief Executive Stewart Glendinning said.
“We remain focused on continuing to serve our customers and positioning our organization for the future.”
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A massive department store now makes an unexpected closure at one of its major Ohio locations, which is set to shutter in just weeks.
The Dillard’s located in the Eastwood Mall in Niles, around 60 miles east of Cleveland, was the company’s final branch in the Mahoning Valley.
A spokesperson for the mall’s owner, Cafaro Company, said the exact date of the closure has not been decided but it is expected to be at the end of July, according to the Tribune Chronicle.
This means shoppers will have until this summer to enjoy the department store and buy their favorite pieces in person, reports The US Sun.
Shoppers looking to visit the department store after this closure could go to the next nearest location in Akron, Ohio, around 50 miles west of Niles.
“Their lease was coming to an end, and we’re sad to see a longtime tenant of the mall leave,” Cafaro Company spokesperson Joe Bell said.
Bell confirmed that the space was not going to be left empty for very long.
The soon-to-close Dillard’s will be replaced by Dave & Buster’s.
The Texas-based entertainment and restaurant chain will bring arcade games and a new food section to the mall.
“Times change and needs change, so our team started talking about the best way to develop that space,” Spokesperson Bell said.
“Dave & Buster’s was the best way to start.”
The entertainment chain however will only take over 32,000 square feet of the 116,000 square feet Dillard’s had occupied.
This means more retailers could enter the mall in the near future.
“You can certainly envision it being subdivided for a number of businesses, but it also could be one large business, an entertainment concept of some sort, another large retailer,” Bell said.
“I think there have been multiple discussions with a whole variety of businesses.”
Dillard’s, Inc. is an upscale American department store chain with approximately 282 stores in 29 states and headquartered in Little Rock, Arkansas.
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