Express Inc. has filed for Chapter 11 bankruptcy protection. Once a trailblazer in casual workplace wear, the company has struggled to compete with retailers like Zara and H&M.
Express Inc. has filed for Chapter 11 bankruptcy protection. Once a trailblazer in casual workplace wear, the company has struggled to compete with retailers like Zara and H&M. (Photo : by Kena Betancur/Getty Images)
The 1980-founded business with its headquarters in Columbus, Ohio, also disclosed on Monday that it plans to sell most of its retail locations.
In the process, Express, the company behind the Bonbons and UpWest brands, is closing a few of its stores. The firm said that it will close all 10 of its UpWest stores and 95 of its Express retail locations in response to its bankruptcy declaration.
On Tuesday, closing sales at the more than thirty states and Washington, D.C. outlets that are being shuttered will start. Express stated that it plans to carry on with business as normal despite these disruptions.
Additionally on Monday, Express declared that a group led by consumer brand acquisition and management company WHP Global had sent it a non-binding letter of intent to buy most of its operations and locations. Express stated that in order to "simplify the sale process," it has filed for Chapter 11 protection.
According to Express, mall operators Simon Property Group and Brookfield Properties are part of the group investigating the purchase. Requests for comment on Monday were not immediately answered by WHP, Simon Property, or Brookfield.
WHP "has been a strong partner" of Express since 2023, according to CEO Stewart Glendinning, who also stated that the planned deal will provide Express with more financial resources and better position it to develop financially while maximizing value for stakeholders.
A wide range of industries were impacted by the closures, including drugstores, discount stores, and apparel stores, as American business moves more and more online.
However, the residential and commercial real estate market took the brunt of the blow, accounting for almost 30% of all closures, or more than twice as much as in 2022.
The high total was caused by the bankruptcy of several shops in 2023, including Tuesday Morning and Bed Bath & Beyond, which led to the closure of nearly all of their locations. In the midst of typically weak sales, other stores, such as Signet Jewelers, announced closures.
A number of stores, including Walgreens, attributed their declining revenues and store closures on rising theft.
As of late, the most recent projections from consultancy company Coresight Research indicated 5,463 closures overall. That is a 30% rise over 2022.
The retail landscape in the United States has witnessed a seismic shift in recent years, with a notable trend being the closure of brick-and-mortar stores. This phenomenon has been accelerated by the rise of e-commerce giants like Amazon, which have lured consumers with the convenience of online shopping and fast delivery options. Traditional retailers, particularly those in sectors like apparel, electronics, and department stores, have struggled to compete with the expansive digital offerings and competitive pricing of online counterparts. Consequently, many iconic retail chains have been forced to shutter stores or declare bankruptcy as they grapple with declining foot traffic and shifting consumer behaviors.
The COVID-19 pandemic further exacerbated challenges faced by brick-and-mortar retailers, as lockdowns and social distancing measures prompted temporary closures and suppressed in-store sales. Retailers deemed non-essential experienced prolonged periods of reduced revenue, leading to widespread store closures and layoffs. Even as restrictions eased, consumer preferences continued to favor online shopping, prompting retailers to reassess their physical footprints and prioritize digital strategies. While some retailers have managed to pivot successfully to e-commerce or adopt hybrid models, others have struggled to adapt, resulting in a wave of permanent closures and bankruptcies across the retail sector.
Amidst these transformations, there's a growing recognition of the need for innovation and agility in the retail industry. Forward-thinking retailers are leveraging technology, data analytics, and omnichannel strategies to enhance the customer experience and drive sales. Additionally, there's a renewed emphasis on sustainability, ethical consumerism, and experiential retail as retailers seek to differentiate themselves and resonate with today's discerning consumers. Ultimately, the changing retail world in the US underscores the importance of adaptability and resilience in navigating uncertain times and capitalizing on emerging opportunities in an ever-evolving marketplace.
