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Fashion retailer Express filed for Chapter 11 bankruptcy after struggling with merchandise missteps that failed to excite shoppers.
It plans to close 95 Express stores and all UpWest stores, while continuing online and other store operations.
“With the company struggling to gain traction with consumers, it has been obvious for quite some time that bankruptcy was the inevitable destination for Express,” GlobalData managing director Neil Saunders stated.
Express operates over 500 stores under various brands.
According to analysts, Express was hurt by overpriced, bland products that made its brand less relevant compared to competitors, as the casual wear market softened.
“The woes at Express are not all of its own making. 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,” Saunders said. “This puts Express firmly on the wrong side of trends and, in our view, the chain made too little effort to adapt.”
“As a result, the Express brand itself has become less relevant to shoppers,” he said.
The company also obtained $35 million in new financing from lenders and received a letter of intent for WHP Global to potentially acquire most of its retail business.
Express CEO Stewart Glendinning said these steps would strengthen its finances and enable business initiatives to maximize value.
“We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations,” Glendinning stated. “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 maximize value for our stakeholders,” Glendinning said.
