US-headquartered multi-brand fashion retailer Express has received a non-binding letter of intent (LOI) from a consortium for the potential sale of a majority of its retail stores and operations.
The consortium is led by WHP Global, owner of Toys "R" Us, with participation from Simon Property Group and Brookfield Properties.
To facilitate the sale process, Express and its subsidiaries have filed voluntary Chapter 11 petitions in the US Bankruptcy Court for the District of Delaware.
The company has received a commitment for $35m in new financing from certain existing lenders, subject to court approval.
In addition, Express received $49m in cash from the Internal Revenue Service related to the CARES Act on 15 April 2024.
During the process, the retailer will continue to serve customers in stores across its EXPRESS, Bonobos and UpWest brands and expects to conduct business as usual while working to right-size its lease portfolio and operations.
Its online channels, including Express.com, Bonobos.com and UpWest.com, along with all brand apps, are also accepting orders.
As part of this process, the company intends to close approximately 95 EXPRESS retail stores and all UpWest stores, with closing sales at affected stores scheduled to begin on 23 April 2024.
The company has also appointed Mark Still as senior vice-president and chief financial officer, effective immediately.
Express chief executive officer Stewart Glendinning said: “We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations.
“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 maximise value for our stakeholders.”
Kirkland & Ellis is serving as legal counsel for Express during the process.
