Apparel Retailer Express Files for Bankruptcy; Shuts Some Stores
Portfolio Pulse from Shivani Kumaresan
Express Inc (OTC:EXPR) has filed for Chapter 11 bankruptcy and plans to close about 95 Express retail stores and all UpWest stores. The company received $35 million in new financing from its lenders and $49 million from the IRS related to the CARES Act. A consortium led by WHP Global has shown interest in buying a majority of Express's retail stores and operations. Mark Still has been appointed as the new CFO. Express's shares fell by 9.09% to $0.70.
April 22, 2024 | 11:23 am
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Express Inc files for Chapter 11 bankruptcy, plans store closures, secures new financing, and appoints a new CFO. Shares dropped 9.09% to $0.70.
Filing for Chapter 11 bankruptcy and closing a significant number of stores indicate financial distress, which typically leads to a negative short-term impact on stock prices. The appointment of a new CFO and securing new financing might mitigate the impact slightly, but the overall sentiment is likely to remain negative in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100