Express has filed for bankruptcy and plans to close nearly 100 of its 500 retail locations, the Columbus, Ohio-based clothing retailer announced Monday.
A source of modestly priced outfits for more than 40 years, closing sales begin Tuesday at approximately 95 of the company’s stores, including all of its UpWest stores, Express said in a statement.
The company operates some 530 Express Retail and Express Factory Outlet stores in the United States and about a dozen UpWest stores, according to its website.
Express’s revenues have exploded in recent years, with the company’s latest results showing sales down almost 10% compared to the same period in 2019, noted Neil Saunders, managing director of GlobalData.
The company’s woes are not entirely her fault, according to Saunders. “The formal and casual chic market for men and women has weakened in recent years due to the increase in working from home and the precariousness of fashion. This places Express firmly on the wrong side of the trends and, in our view, the chain has done too little in its efforts to adapt,” he said.
Yet poor decisions compounded its problems, said Saunders, who cited among them the fashion retailer’s choice of “someone from the meat industry as CEO.” Express named former Tyson Foods executive Stewart Glendinning as head of the company in September.
Express plans to use the Chapter 11 process to facilitate the sale of the company’s operations and most of its stores to brand manager WHP Global and shopping center owners Simon Property Group and Brookfield Properties.
New York-based WHP Global’s portfolio includes Toys “R” Us, Isaac Mizrahi and Rag & Bone. It owns 60% of the Express brand through a joint venture created last year.
Express is working with A&G Realty Partners as part of an ongoing review of its store footprint, he said.
The company’s bankruptcy follows the same move earlier this month by 99 Cents Only Stores And Joann leisure channel in March.