Retail Clothing Giant Express Files for Bankruptcy
Jose Nino
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Fashion retail giant Express Inc. filed for Chapter 11 bankruptcy on April 22, 2024 in a Delaware court. On that day, express announced its decision to close north of 100 stores, per a Reuters report.
The business was one of the key rivals to other leading fashion retailers such as H&M and Zara.
Under Chapter 11 bankruptcy, Express will be going through serious restructuring, per US Courts. “Usually, the debtor remains ‘in possession,’ has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money,” the government website highlighted.
Express Inc. recently named Mark Still as its new CEO, per a Reuters report. Still previously served as the interim CFO of Express Inc. since November 2023. According to Express’ bankruptcy filing, its assets and liabilities are in the range of $1 billion to $10 billion.
On top of that, Express announced its plans to shut down 95 of its retail stores in addition to 10 of its UpWest stores, per an ABC News report. UpWest’s parent company is Express. “We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations,” Stewart Glendinning, Chief Executive Officer of Express, declared in a press release.
“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,” Glendinning continued noting in the press release.
Express asserted that it filed for Chapter 11 protections in order “[t]o facilitate the sale process” of the company’s “retail stores and operations,” the press release stated. In the company’s press statement, it noted that it had “received a commitment for $35 million in new financing from certain of its existing lenders” and had “received $49 million in cash from the Internal Revenue Service related to the CARES Act” on April 15.
The bankruptcy of Express is just a bad economic omen for the US’s broader economy as more companies go under and people lose faith in the country’s economic prospect. These developments are not natural. They’re the product of the US’s over-regulated economy and a fiat monetary system that encourages unsustainable economic actions.
Until this economic system is sorted out, the US will continue to be economically unstable.
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