Apparel company Express, which also owns Bonobos and UpWest, filed for Chapter 11 bankruptcy yesterday after years of dwindling sales. However, a group of investors led by brand manager WHP Global (which owns Toys R Us) is trying to acquire a substantial majority of Express’ retail stores and operations to save the company.
Closing sales are expected to begin today at 95 of its more than 500 stores in the US, including all UpWest stores. The company will continue its sales through online channels.
In a court filing, Express said that as of March 2, it had $1.3 billion in assets and $1.2 billion in debt. CNBC reported earlier this month that the retailer has been struggling to pay its vendors on time, indicating that it had been struggling to manage cash flow.
Since 2019, the company’s revenue has been down roughly 10%.
Bankruptcy will give the retailer time to work on a turnaround strategy and manage their costly leases.