**Reviving Express: Investors Step in to Save Mall Retailer**
In a surprising move, longtime mall retailer Express has filed for Chapter 11 bankruptcy protection. Despite this setback, there is hope for the brand as a group of investors led by brand management firm WHP Global is looking to acquire the company and save it from complete closure.
Express, known for its portfolio including its namesake banner, Bonobos, and UpWest, announced the closure of 95 of its eponymous shops and all UpWest doors. However, the remaining stores will continue operating as usual, accepting orders and returns without interruption. The company stated that this bankruptcy filing is to facilitate the sale process of most of its retail stores and operations to the investor group, which includes WHP, Simon Property Group, and Brookfield Properties.
To support its restructuring efforts, Express has secured $35 million in new financing from existing lenders and received a significant boost of $49 million in cash from the IRS related to the CARES Act. This infusion of liquidity is crucial in stabilizing the company’s financial health.
CEO Stewart Glendinning expressed optimism about the company’s future, emphasizing ongoing efforts to refine product assortments, drive demand, and strengthen operations. The proposed acquisition by the investor group aims to provide Express with additional financial resources, positioning the business for profitable growth and maximizing value for stakeholders.
This strategic move comes at a critical time for Express, as declining sales and mounting debt have been major challenges for the brand in recent years. Industry experts speculate that this bankruptcy filing will allow Express to address costly leases, adapt to changing consumer trends, and emerge stronger from this restructuring process.
In the face of these challenges, Express is supported by top-tier professionals in the industry. Kirkland & Ellis, a powerhouse law firm with expertise in retail bankruptcies, is providing legal counsel, while Moelis & Co. serves as the investment banker and M3 Partners as the financial advisor.
As the situation unfolds, Extreme Investor Network will continue to provide updates and analysis on Express’ journey toward recovery and revival. Stay tuned for exclusive insights and expert perspectives on this evolving story.
