Bankruptcy
In August 2023, Express announced it would be laying off 150 workers in effort to achieve $150 million in annualized expense reductions by the end of 2025.[23] On October 24, it warned that it may have to file for Chapter 11 bankruptcy protection as it has been hit hard from the COVID-19 pandemic, stating store sales have been declining for years and rising costs putting the company in heavy debt.[24]
In February 2024, Express warned it was preparing for a debt restructuring process and a bankruptcy filing within the upcoming weeks, and had hired M3 and Kirkland & Ellis to advise the firm on discussions with lenders and bondholders.[25]
On April 2, Express warned that it could file for bankruptcy as soon as the following week as it asked for lenders to help finance the bankruptcy procedure. It was having trouble paying its creditors. As a result, Express' stock fell approximately 14%.[26][27]
On April 22, Express and all of its affiliated subsidiaries declared Chapter 11 bankruptcy in the United States, listing assets and liabilities between $1 billion and $10 billion.[28] In addition to announcing plans to close 95 Express stores and all of its UpWest stores and begin a two-month liquidation sale at the affected locations, the company received a non-binding letter from WHP Global for the sale of most of its stores, operations, and assets.[29]
Also on April 22, a day before warning that it could be forced to liquidate if it was unable to complete a proposed buyout within the next 30 days,[30] Express reported that it would sell itself in Chapter 11 to a group led by Simon Property Group (SPG) and Brookfield Properties, and also warned that more closures could come within weeks.[31]
On June 25, 2024, after receiving court approval,[32] it was announced that the company had its assets acquired by PHOENIX, a joint venture led by WHP Global, SPG and Brookfield Properties.[33]
