Apparel retailer Express to reorganize under Chapter 11

Apparel retailer Express, who is helmed by former Tyson Foods CFO Stewart Glendenning, plans to close 95 stores as it restructures its finances amid a Chapter 11 bankruptcy filing.

The company has not released the list of store closures. Express operates two stores in Arkansas, one in Fayetteville and the other in Little Rock. The retailer said its direct to consumer brand UpWest are part of the closures, but Bonobos stores are not included.

The retailer reported more than $70 million owed to its top five creditors. This is the third retailer to file bankruptcy this year, following crafter Joann and the 99 Cents Only stores.

Express received $35 million in bankruptcy financing from existing lenders and received an additional $49 million in cash from the Internal Revenue Service related to the CARES Act. The retailer plans to sell itself to a consortium led by WHP Global, which also includes Simon Property Group and Brookfield Properties.

The company named Mark Still the senior vice president and chief financial officer. Still was the interim CFO since November. Express said it plans to continue business as usual as the bankruptcy case proceeds and it moves toward a court-supervised sale.

“With the company struggling to gain traction with consumers, it has been obvious for quite some time that bankruptcy was the inevitable destination for Express,” said Neil Saunders, managing director of GlobalData. “The formal and smart casual market for both men and women has softened over recent years because of a rise from working from home and the casualization of fashion. This puts Express firmly on the wrong side of trends and, in our view, the chain made too little effort to adapt.”

Glendinning took over as CEO at Express in September. He said bankruptcy protection is “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.”