Express closing 7 NJ locations as part of Chapter 11 bankruptcy

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After filing for Chapter 11 bankruptcy protection, fashion retailer Express Inc. is closing the majority of its stores, including seven in New Jersey.

In an April 22 announcement, the Columbus, Ohio-based company said it plans to shutter more than 100 locations. In addition to Express stores, the retailer’s banners also include Express factory outlets, Bonobos and UpWest stores.

The move affects at least 95 of the company’s 530 namesake stores in the U.S. and Puerto Rico, including full-price and factory outlets, as well as all 12 UpWest.

Within New Jersey, the following Express stores will close:

• Westfield Garden State Plaza, Paramus
• Freehold Raceway Mall, Freehold
• Deptford Mall, Deptford
• Mall at Hamilton Center, Mays Landing
• Moorestown Mall, Moorestown
• Livingston Mall, Livingston
• Woodbridge Center, Woodbridge

After the stores go dark, the company will have 10 locations statewide.

Closing sales at impacted locations marked are scheduled to begin April 23.

Bigger deal

Express also revealed it received a non-binding letter of intent from a group led by New York-based WHP Global Management for the potential purchase of the company.

Express said the consortium exploring the deal includes mall operators Simon Property Group and Brookfield Properties.

Retail woes:

Amid a doubling of corporate filings in the U.S. Bankruptcy Court for the District of New Jersey over the past year, retail-related cases – like Bed Bath & Beyond and David’s Bridal – dominated the docket, according to a report released at the end of the year. Click here to read more.

The company said it filed voluntary Chapter 11 petitions in U.S. Bankruptcy Court for the District of Delaware in order to “facilitate the sale process.”

Express said it received a commitment for $35 million in new financing from certain existing lenders, subject to court approval, as well as $49 million April 15 from the Internal Revenue Service related to the pandemic-era CARES Act.

Moving forward, Express said it is working with New York-headquartered real estate advisory firm A&G Realty Partners to assess remaining store footprint in connection with the bankruptcy process.

As the company works to right-size its lease portfolio and operations, Express said it is continuing to serve customers in stores and online across all three brands and expects to conduct business as usual.

Making progress

In a statement, Express CEO Stewart Glendinning, said, “We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations.”

“We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives. WHP has been a strong partner to the company since 2023, and the proposed transaction will provide us additional financial resources, better position the business for profitable growth and maximize value for our stakeholders,” he said.

Glendinning went on to say, “Express has a strong portfolio of brands and a premier omnichannel platform. Our top priority remains providing our customers with the contemporary styles and value they expect from us. We thank our associates for their continued hard work and commitment, and we appreciate the ongoing support of our vendors, suppliers and business partners.”

The retailer also announced an update to its leadership team.

Mark Still, who has served as interim chief financial officer since November 2023, was named senior vice president and CFO, effective immediately. After joining the company in 2005, Still has held finance roles of increasing responsibility, including senior vice president, brand finance and planning & allocation.

Glendinning congratulated Still “on his appointment as our go-forward CFO,” saying the promotion underscores “the significant contributions he has made to Express throughout his career.”

“We look forward to continuing to benefit from his extensive leadership experience and financial expertise as we move ahead,” he said.