It's last call for shopping at select Express stores. The retailer, facing stiff competition from fast fashion and athleisure giants, has filed for Chapter 11 bankruptcy protection. Three Massachusetts stores, including popular locations in North Dartmouth, Boston's Newbury Street, and Dorchester's South Bay Center, are set to close. Additionally, all UpWest locations will shut down as Express aims to streamline operations to stay afloat.
While many employees and shoppers are set to face the music starting Tuesday with the beginning of liquidation sales, a non-binding letter of intent from WHP Global hints at a potential pickup for the majority of Express' operations. Despite the turmoil, Express said it will still be business as usual for now, with the company continuing to operate around 530 other retail and factory outlet stores in the United States and Puerto Rico, in addition to about 60 Bonobos Guideshop locations and online sales for these brands. All this, according to WCVB, detailing the high hopes of the retailer.
The fashion chain, known for its casual office wear and trendy, budget-friendly styles, has seen its market share eroded by competitors like Zara, H&M, and athleisure brands such as Lululemon. Analysts highlight the shift toward remote work as another nail in the coffin—reducing the demand for Express' work-oriented apparel. Neil Saunders, managing director with GlobalData, pointed out that "everyone has been nibbling at Express from all sides, and Express doesn't have a defensible proposition," as reported by WCVB.
Alongside store closures, the Ohio-based retailer also appears to be shuffling its leadership deck. Mark Still is taking over as chief financial officer after holding the position on an interim basis since November last year. Express is navigating tough retail seas with a deal for $35 million in new financing, lined up against nearly $1.2 billion in debts. However, bolstering the retailer's war chest, the company has reportedly landed $49 million in pandemic relief cash earlier this month from the IRS, a life preserver as it enters choppy bankruptcy waters. This development was reported by MassLive.
Express is not alone in its struggles. Recent trends and forecasts by BDO suggest the number of retailers seeking Chapter 11 protection this year could hover around last year's figure of about 24. This comes after pandemic-related pressures led to an upsurge of bankruptcies in 2020, painting a worrying picture for brick-and-mortar retailers still trying to recover in a dynamically shifting consumer landscape.
