April 22 (UPI) -- Clothing retailer Express said on Monday it has filed for Chapter 11 bankruptcy and will close 95 stores, including all of its UpWest stores, with closing sales starting on Tuesday.
Express, a shopping mall staple, said its remaining stores will operate as usual during the mass closing. The company said it made the move to file for bankruptcy as a strategic move to sell most of its operations to an investment group.
Express said that WHP Global, an indirect subsidiary of shopping outlet giant Simon Property Group, leads the investment group.
Express said it has received a commitment for $35 million in new financing from some of its existing lenders depending on bankruptcy court approval and $49 million from the Internal Revenue Service in connection with CARES Act.
"We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations," Stewart Glendinning, CEO of Express, said in a statement.
"We are taking an important step to 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."
Express said all of its brands will continue to fulfill orders and process returns and gift cards. Bonobos, one of Express's brands, will continue to serve its premium wholesale customers. Customer benefits related to the Express Insiders program are expected to remain the same.
