RETAILER Express is asking its lenders for funds to help finance a potential Chapter 11 bankruptcy process, according to sources with knowledge of the plans.
Express, which sells mid-priced apparel, has been burning through cash as it attempts to fix its troubled operations.
Express may file for bankruptcy as soon as next week, but the preparations are not final and plans could change, said the sources, who asked not to be identified because negotiations are private.
A representative for the company declined to comment on the discussions.
Bankruptcy allows companies to shed expensive leases and continue operating, or quickly find a buyer. Express, which was once a top destination for Millennials dressing for both the office and the club, burned through more than US$200 million during its 2022 fiscal year.
Its finances have suffered as it struggled to align with changing consumer tastes and competed with ultra-fast fashion powerhouses such as Shein, Temu and Boohoo, which rapidly churn out new styles.
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Express shares have tumbled more than 80 per cent this year, leaving it with a market capitalisation of just US$5.3 million against a debt load of nearly US$300 million. The Columbus, Ohio-based chain operates more than 500 full-price and outlet locations. BLOOMBERG
