Express, Inc. Announces Potential Sale Amidst Strategic Restructuring
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- Published: Wednesday, 24 April 2024 12:07
Express, Inc. (OTC PINK: EXPR) has recently disclosed its receipt of a non-binding letter of intent from a consortium led by WHP Global (“WHP”), along with the participation of a wholly owned indirect subsidiary of Simon Property Group, L. P. (“Simon”) and Brookfield Properties (“Brookfield”), for the potential sale of a significant majority of the Company’s retail stores and operations.
In a strategic move to facilitate the sale process, Express and its subsidiaries have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. As part of this restructuring initiative, Express has secured a commitment for $35 million in new financing from certain existing lenders, subject to court approval. Furthermore, the Company received $49 million in cash from the Internal Revenue Service related to the CARES Act on April 15, 2024.
Despite these developments, Express is committed to maintaining its seamless service to customers both in-store and online across its EXPRESS, Bonobos, and UpWest brands. Stewart Glendinning, Chief Executive Officer of Express, emphasized the company's ongoing efforts to refine product assortments, drive demand, and strengthen operations amidst this transition. Glendinning expressed confidence in the proposed transaction, highlighting WHP's partnership since 2023 and its potential to provide additional financial resources to propel profitable growth and maximize value for stakeholders.
Mr. Glendinning underscored the enduring commitment to customers and expressed gratitude to associates, vendors, suppliers, and business partners for their continued support throughout this period of transformation.
In alignment with its restructuring strategy, Express intends to shutter approximately 95 EXPRESS retail stores and all UpWest stores, with closing sales scheduled to commence on April 23, 2024.
In a leadership update, Express announced the appointment of Mark Still as Senior Vice President and Chief Financial Officer, effective immediately. With a tenure at Express dating back to 2005 and extensive finance experience, Still's appointment reaffirms the company's commitment to stability and expertise in navigating financial matters.
The company has filed customary motions seeking court authorization to support its operations, including employee wage and benefit payments without interruption and the continuation of customer loyalty programs. With sufficient liquidity to sustain operations during the court-supervised sale process, Express remains focused on ensuring a successful enterprise for its customers and the communities it serves.
As Express embarks on this transformative journey, the company remains dedicated to delivering contemporary styles and value to its loyal customer base while navigating the evolving landscape of the retail industry.