The renowned American fashion brand Express files for bankruptcy

Recently, the well-known fashion retailer Express applied for bankruptcy protection in the federal court of Delaware, USA. Meanwhile, a group of investors led by brand management company WHP Global is seeking to rescue the company through acquisition.

Express's portfolio includes its eponymous brand, Bonobos, and UpWest. The company has announced plans to close 95 of its namesake stores and all UpWest stores, roughly 17% of its total stores. According to the company's securities filings, as of January last year, it operated a total of 553 stores.

The company stated that the operating hours of the remaining stores will not change, and they will continue to accept orders and returns as usual. Express stated, "The proposed transaction will provide Express with additional financial resources to better position the company for profitable growth and maximize value for the company's stakeholders."

Stewart Glendinning, the CEO of the company, said in a statement, "We continue to make significant progress in refining our product assortment, driving demand, engaging with customers, and enhancing operations. We are taking an important step that will strengthen our financial position and enable the company to continue advancing our business plan."

Over the past few years, this business casual clothing brand, founded in 1980, has faced declining sales due to debt and expensive mall leases. According to a court filing, as of March 2, 2024, the company had total assets of $1.3 billion and total debts of $1.2 billion.

Neil Saunders, Managing Director of GlobalData, said in a statement, "The biggest issue remains falling revenue, which has declined by around 10% since 2019. This contrasts sharply with robust growth in the apparel sector over the same period, placing significant financial pressure on the company and resulting in some significant losses. It is unsustainable, and is one of the reasons for the company's bankruptcy."

Saunders added, "Express's woes are not entirely of its own making. In recent years, there has been softness in both the formal and fashion casualwear markets due to the rise of remote working and casual fashion. This has left Express on the wrong side of the trend, and we believe the efforts made by the chain to adapt to the trend have been insufficient." The bankruptcy filing may provide some crucial relief for Express, helping it regain its footing in implementing its turnaround strategy.