An iconic clothing mall retailer now prepares for unexpected bankruptcy, prompting stores to slash prices at locations.
Express is preparing to file for possible bankruptcy, according to a report by the Wall Street Journal.
People inside the apparel company told the outlet it could file for Chapter 11 in only a matter of weeks.
It comes after Express hired debt restructuring adviser M3 and law firm Kirkland & Ellis.
The publicly-traded company has close of a whopping $280 million of debt amid declining sales.
If Express cannot negotiate new terms with its lenders, it may be forced to restructure its debt via a Chapter 11 bankruptcy, reports The-Sun.
Chief executive officer Stewart Glendinning said during an earnings call in November 2023 that offering discounts to customers will also be part of the company’s strategy.
“We’re actively adjusting our assortment architecture through a better balance in wearing occasion, price points, and a focus on more casual tops and bottoms,” he said.
Express is currently offering 40% off everything.
The fast fashion chain has struggled to maintain a footing since closing 91 stores in 2020, reports the outlet.
Express first opened in 1980, offering customers stylish everyday pieces at an affordable price.
However, these days, it is struggling to differentiate itself from other retailers.
“Until they fix the waning consumer demand for their merchandise and elevate the brand and product mix, financial wizardry will not resolve their retail woes,” Shawn Grain Carter, a retail industry consultant and professor at the Fashion Institute of Technology at the State University told Retail Dive.
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Also Read: This Massive Mall Retailer Is Now Closing In California
Other Economy News Today
Another popular restaurant now declares an unexpected bankruptcy after closing several chains in Chicago, Arizona, and California.
Etta Collective, a small chain that operates multiple concepts in Chicago, Arizona and Los Angeles has closed several restaurants and has filed for Chapter 11 bankruptcy, reports TheStreet.
The chain closed its namesake restaurant in Los Angeles last year and abruptly shut down a Chicago-area restaurant, Sophie’s, earlier this year.
Now, after defaulting on a $2.5 million loan, the company’s owner, restaurateur David Pisor, has officially made the bankruptcy filing.
Pisor’s Etta collective runs a number of different concepts including its namesake restaurants, a bakery cafe, Alston House, a high-end steakhouse, and Kari, an upscale sushi concept.
The chain also has Marilyn’s, a planned concept that has not opened.
Pisor has said that the bankruptcy filing was made in order to help the company continue to operate.
“We have made a proactive decision to commence this strategic reorganization process with the cooperation of our lender, who has agreed to work with us so that we can come out of this process even stronger than before,” Restaurant Business reported.
The bankruptcy process could include a sale of the brand as the investor John Leahy has emerged as a bidder for the company’s assets.
“Our aim is to best position the Etta brand for future success,” Pisor said in a statement.
“By filing for protection under Chapter 11, we will be able to restructure our financial position while continuing our daily operations and keeping our locations open.
As has already happened in our Scottsdale location, we predict that we will emerge stronger both operationally and financially.”
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
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