Express Inc. (EXPRQ) reports earnings

The filing was submitted on December 31, 2024

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Express Inc. (EXPRQ0.00%) has filed for Chapter 11 bankruptcy protection filing as part of a reorganization plan confirmed by the U.S. Bankruptcy Court for the District of Delaware on December 17, 2024.

The filing follows a strategic decision to implement a going-concern sale transaction, which included the sale of a substantial portion of the company's assets to a consortium led by WHP Global and affiliates of Simon Property Group and Brookfield Properties.

The asset purchase agreement with the consortium, known as Phoenix JV, was approved by the bankruptcy court on June 14, 2024, and the sale was completed on June 21, 2024. The transaction included the transfer of 403 Express stores, 50 Bonobos stores, and the corporate headquarters lease.

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Express Inc. has ceased all operations except those necessary to wind down its business as part of the reorganization plan. The proceeds from the sale and remaining assets will be distributed to eligible claim holders.

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Express Inc. had previously delisted its common stock from the New York Stock Exchange on March 6, 2024, and filed a Form 15 to terminate its registration with the SEC on April 24, 2024.

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As part of the Chapter 11 process, Express Inc. obtained $214 million in debtor-in-possession financing to support its operations during the proceedings.

The company reported a net loss of $208.5 million for the fiscal year ended February 3, 2024, with net sales of $1.85 billion, a slight decrease from the previous year.

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Express Inc. had previously entered into a strategic partnership with WHP Global in January 2023, which included the formation of an intellectual property joint venture and the acquisition of the Bonobos brand.

The company's financial difficulties were exacerbated by a challenging retail environment, including reduced consumer spending and increased promotional activity across the industry.

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Express Inc. has acknowledged that all existing equity interests in the company, including common stock, will be canceled with stockholders receiving no recovery.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Express Inc. annual 10-K report dated December 31, 2024. To report an error, please email earnings@qz.com.