A massive mall retailer now files for Chapter 11 bankruptcy after months of speculation it would come to the inevitable decision.
A consortium led by Toys ‘R’ Us owner WHP Global that includes mall operators Simon Property Group and Brookfield Properties has offered to buy a “substantial majority” of Express, Inc.’s retail stores and operations.
In order to facilitate the sale and free up the liquidity needed to continue operations during the process, Express has filed for Chapter 11 bankruptcy protection, reports Retail Touch Points.
The fashion retailer, which includes the Express, Bonobos and UpWest brands, has been under pressure for some time now.
In September 2023 the company brought in former Tyson Foods exec Stewart Glendinning as CEO to turn around the business, and the company initiated a restructuring effort in February 2024.
Despite that, Express was delisted from the New York Stock Exchange on March 6, 2024, due to underperformance.
As part of the bankruptcy, all UpWest stores as well as 95 Express stores will be closed beginning April 23, 2024, with additional closures possible as the company assesses its footprint.
The remaining Express and Bonobos stores will continue normal operations through the sale, as will the websites of all three brands.
Bonobos’ wholesale operations will also continue uninterrupted.
In order to support continued operations, the company has received a commitment for $35 million in new financing from some of its existing lenders and will also use the $49 million in cash it received on April 15, 2024, from the Internal Revenue Service related to the CARES Act.
Express had hoped that its existing partnership with WHP Global, which began in December 2022, would help with a turnaround.
“We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations,” said Express CEO Glendinning in a statement.
“We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives.
WHP has been a strong partner to the company since 2023, and the proposed transaction will provide us additional financial resources, better position the business for profitable growth and maximize value for our stakeholders.”
In tandem with the bankruptcy filing and sale transaction, Express has named interim CFO Mark Still to the position on a permanent basis.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A popular hardware chain now makes an unexpected closure while offering a liquidation sale of up to 50% off for shoppers.
Shoppers in Youngstown, Ohio, about 50 miles east of Akron, must act fast to take advantage of the liquidation sales at True Value Hardware in the Cornersburg Plaza Shopping Center, reports The-Sun.
Employees at the store noted the location’s official closure date is set for April 30, per local CBS affiliate WKBN-TV.
Liquidation sales are as high as 50% off for customers.
It’s unclear what led to the imminent shutdown, reports the outlet.
True Value still has around 4,500 independent locations across the world despite the Youngstown closure on April 30.
There are still several hardware stores in the area that customers can travel that are only a few miles from the soon-to-be-closed True Value.
They include Campbell Hardware & Supply, Star Supply, Lowe’s, and E&H Ace Hardware.
Both True Value and Ace Hardware share a similarity in having store locations around the country that are semi-independently owned.
This can offer both benefits and disadvantages, reports The-Sun.
While it allows franchisees to have much control over the operations of their locations, the stores’ success can depend a lot on what happens to them.
An Ace Hardware store in California closed its doors for good last fall after being open for almost a century.
Its co-owner, Frank Nelson, decided it was time for him to retire and shut down operations on October 20.
Liquidation sales as high as 60% were offered to customers.
Nelson still attempted to keep the business alive.
He tried getting other Ace Hardware franchisees to grab the opportunity and expand their reach by buying his store, but no one took him up on it.
This was despite raving reviews of the location, as it earned a 4.2 out of five-star rating on Google.
Some customers said it was “like entering a simpler time, almost nostalgic.”
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