Apparel retailer Express said on Tuesday that it needs to move quickly to a bankruptcy sale in order to avoid a complete liquidation of its business.
Express filed for bankruptcy protection on Monday with a non-binding agreement to sell most of its retail stores and operations to a consortium led by equity investor WHP Global and Express’s two largest landlords. At the company’s first appearance in Wilmington, Delaware’s bankruptcy court, Express’s attorney Emily Geier at Kirkland & Ellis said that the company is racing to finalize that sale agreement within 30 days.
“We are going to try to get this done right, and we are going to move very quickly because we really only get one shot,” Geier told U.S. Bankruptcy Judge Karen Owens.
If Express cannot finalize a sale agreement within 30 days, it is prepared to pivot to a liquidation of its business rather than pursue a lengthy bankruptcy that racks up significant legal fees while keeping its employees, clothing suppliers and other stakeholders in a state of uncertainty, Geier said.
Express, which also owns the Bonobos and UpWest brands, has 9,300 employees and more than 500 retail locations in the United States. The company intends to close at least 100 unprofitable locations during its bankruptcy, according to its court filings.
Brand management firm WHP Global, which owns Toys “R” Us and fashion labels such as Anne Klein, took a 7.4% stake in Express last year. The WHP-led consortium plans to acquire the Express and Bonobos brands and maintain at least 280 retail locations, without acquiring the UpWest brand, according to court documents.
Express entered bankruptcy with about $189 million in funded debt, and it said the largest factor in its bankruptcy was the long-term decline in foot traffic at U.S. shopping malls.
The case is In re Express Inc, U.S. Bankruptcy Court for the District of Delaware, No. 24-10831.
Source: Reuters.com