Express, known for its trendy business casual attire, has declared Chapter 11 bankruptcy and will close more than 95 stores in the United States.
RELATED STORIES: Red Lobster Considering Filing For Chapter 11 Bankruptcy
Express, Inc., which operates Express stores, factory outlets, Bonobos, and UpWest stores, said in a statement that closures will begin on Tuesday. A spokesperson said the closures would affect multiple locations in several states, including New York, California, Pennsylvania, and Texas. According to CNBC, Express reportedly received a nonbinding letter of intent for a potential sale of the company to WHP Global, with involvement from entities like a subsidiary of Simon Property Group and Brookfield Properties.
The company also secured a commitment for $35 million in new financing from some of its existing lenders, pending court approval, and received $49 million cash from the Internal Revenue Service under the CARES Act. In response to the bankruptcy, CEO Stewart Glendinning expressed optimism about the retailer’s future: “We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives,”
RELATED STORIES: Bank Employee Fired For Claiming Partner’s Lunch As A Work Expense
“We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations”
Express has reportedly faced struggles against newer, contemporary brands and trends due to a shift in workplace culture and fashion. However, news of the retailer’s closures and bankruptcy filing has left millennials reminiscing about making Express clothing a part of their wardrobe.
One user said, “The upcoming tie sales are about to fund my wardrobe for months.” Another wrote,“The last time I looked at the website, they weren’t even selling their own brand anymore. There is no reason to continue to shop there after being a faithful customer for 35 years.
One user also stated how they felt the company was reportedly out of touch with current marketing and fashion trends: “Express is out of touch with fashion. They’re still stuck in the late 90’s to mid-2000’s young professional look – no wonder their ship is sinking. It’s all about Kith & Aime Leon Dore. These are the two shops that are constantly selling out items, if you’re not early for drops.”