Longtime American mall retailer Express Inc, which imports readymade garment (RMG) products worth around $100 million a year from Bangladeshi manufacturers, has filed for Chapter 11 bankruptcy.
The brand intends to close more than 100 stores, reports Reuters.
The retailer whose portfolio includes brands such as Express, Bonobos and UpWest Express, listed assets and liabilities in the range of $1 billion to $10 billion, according to a filing with the bankruptcy court in Delaware.
Eleven affiliated firms of the brand also filed their respective Chapter 11 petitions.
Express Inc also named Mark Still as its new CFO, effective immediately. The executive has served as interim CFO since November 2023.
As part of the bankruptcy process, the company will close approximately 95 Express retail stores and all of its UpWest stores, starting Tuesday, it said, without specifying the locations.
The company operates about 530 Express retail and Express Factory Outlet stores in the United States and Puerto Rico and around 12 UpWest retail stores, according to its website.
Launched in 1980, Express has been battling with soft consumer demand due to slowing spending patterns and increased price sensitivity in discretionary categories.
The bankruptcy filing was expected earlier this year.
Credit monitoring firm Creditsafe said at the time that late payments have been a consistent problem at Express, an indication of ongoing liquidity problems report, sourcing journal.
According to industry insiders, about 12-14 top Bangladeshi RMG manufacturers have business with this iconic brand. Their annual import value is about $100 million.
They also said some of them have some outstanding payments from this brand.
Shovon Islam, managing director of Sparrow Group, one of the manufacturers that exports RMG goods to Express, said the brand informed us they are going to file chapter 11 for restructuring their business.
“I believe that Express is an iconic brand in the USA and they have a huge loyal customer base. After restructuring and some changes and new investments, Express will emerge again strongly. Given Bangladesh is a very strategic sourcing destination for Express, they will treat Bangladesh vendor’s pending payments and future orders in a favourable way” he hoped.
The American retailer said it has received a nonbinding letter of intent from a consortium led by brand management firm WHP Global. Other members of the consortium include mall landlords Simon Property Group and Brookfield Properties.
The offer is for the sale of a majority of the chain’s retail stores and operations. But given that it is a nonbinding offer, others could come in and kick the tyres.
Sources said Sycamore has already been snooping around and pondering a possible offer. Sycamore had its eye on Express back in June 2014, when word surfaced that it was interested in acquiring the retailer.
At the time Sycamore held a 9.9% interest in Express. The two were working on deal terms when the transaction collapsed in January 2025 due to certain financing issues.
However, WHP could be seen as having the upper hand since it has held a 7.4% investment stake in the company since January 2023. As part of that investment, WHP holds a 60% interest in a joint venture licensing agreement valued at $400 million, to which the brand management firm contributed $235 million.
