Trendy fashion retailer Express Inc. has filed for bankruptcy.
The mentioned company has recently repeatedly faced problems related to the fact that the products that were part of its assortment offered to consumers did not stimulate an acceptable level of demand from customers.
The retailer has filed with the bankruptcy court in Delaware. The company also announced its intention to close several stores as part of the relevant procedure. The firm currently operates Express stores, Express factory outlets, Bonobos, and UpWest under its corporate umbrella.
The company’s press release, published on Monday, April 22, contains information about plans to close 95 Express locations the total number of which in the United States currently stands at more than 500, and all locations of UpWest. It is also known that closing sales in these stores will begin on Tuesday, April 23.
All online channels of brands managed by the retailer that filed for bankruptcy are currently continuing to fulfill orders, process returns, and redeem gift cards and store credits in-store. The company said that the benefits for customers associated with the Express Insider program will not change and will remain in the same configuration. In this case, the bankruptcy procedure will not become an impact factor.
Neil Saunders, managing director of GlobalData, said in a note released on Monday that Express’s bankruptcy had been obvious for a long time, as the company was trying to gain consumer traction by making every effort to achieve this goal.
It is worth noting that the problems faced by the firm and which became factors in the formation of the state of affairs that led to bankruptcy are not the result of exceptionally internal errors and are partly due to the circumstances of the external environment. The market for formal and smart casual clothing has weakened significantly in recent years. This situation is because the format of remote work is currently being scaled. The corresponding tendency is significantly related to the coronavirus pandemic, which limited many business processes. Against the background of the new realities in the space of public life, fashion is daily shifting towards choosing casual clothes. In these circumstances, Express finds itself outside the main trends.
According to Neil Saunders, the company has made too little effort to ensure that its business adapts to the new features of the external environment. He also noted that the retailer faced low sales figures, which in this case became a kind of punishment for implementing a policy of inflated prices and offering customers goods that are bland compared to competitors’ products. These features of Express’s activities have caused its relevance to fall. Stewart Glendinning, CEO of the company, said that the firm continues to make significant progress in improving its product assortments, stimulating demand, boosting connecting with customers, and strengthening operations. The head of Express also noted that the retailer is taking an important step that will improve its financial position and allow it to continue to advancing business initiatives.
Express raised $35 million in new financing from existing lenders. The company also received a non-binding letter of intent from a consortium led by WHP Global about the potential sale of most of its retail stores and operations. Stewart Glendinning stated that the mentioned consortium is a strong partner of Express, noting that the proposed deal will provide additional financial resources, improve the position of the business for profitable growth, and maximize value for stakeholders.
As we have reported earlier, Crypto’s Terraform Files for Bankruptcy.
