Express has filed for bankruptcy and plans to close nearly 100 of its 500 retail locations, the Columbus, Ohio-based clothing retailer said on Monday.
A source of modestly priced outfits for more than 40 years, closing sales begin on Tuesday at around 95 of the company stores, including all of its UpWest locations, Express said in a statement.
The company operates some 530 Express retail and Express Factory Outlet stores in the U.S. and a dozen UpWest stores, according to its website.
Revenue at Express has cratered in recent years, with the company's latest results showing sales down nearly 10% from the same period in 2019, noted Neil Saunders, managing director of GlobalData.
The company's woes are not entirely of its own making, according to Saunders. "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," he stated.
Despite poor decisions exacerbating its issues, Express faced challenges, with Saunders highlighting the appointment of a former Tyson Foods executive, Stewart Glendinning, as CEO as a misstep. The fashion retailer appointed Glendinning in September, which raised concerns among industry experts.
Express has announced plans to utilize the Chapter 11 process to facilitate a sale of its operations and the majority of its stores to brand manager WHP Global, along with mall landlords Simon Property Group and Brookfield Properties.
WHP Global, based in New York, boasts a portfolio that includes iconic brands like Toys "R" Us, Isaac Mizrahi, and Rag & Bone. The company already owns 60% of the Express brand through a joint venture established last year.
Additionally, Express is collaborating with A&G Realty Partners to conduct a thorough review of its store locations as part of its restructuring efforts.
Express's decision to file for bankruptcy follows similar moves by other retailers, including 99 Cents Only Stores earlier this month and hobby chain Joann back in March.
