It is becoming apparent that Express Inc. could be the next to succumb to the unforgiving jaws of the current economic crisis, as speculation begins to mount surrounding the financial status of the company and the possibility of an impending bankruptcy.
The apparel retailer is believed to have appointed restructuring advisor M3 and law firm Kirkland & Ellis, the Wall Street Journal reported earlier this week, a news item that sent its share price spiralling downwards by 40 percent.
According to the media outlet, the company is currently looking to carry out a debt restructuring that could include a bankruptcy filing within the coming weeks.
Express has recently been filing significant losses, with the nine months ending October 28 seeing a net loss of 154.3 million dollars. Meanwhile, the company’s total debt had amounted to 274.7 million dollars.
Yet, while reports continue to circulate, CEO of Express, Stewart Glendinning, who took on the role following the exit of former head Tim Baxter in September, has maintained a position of strength in a bid to establish some composure among employees.
In an internal memo seen by WWD, Glendinning said: “We have made tremendous progress in our transformation over the past several months: We implemented a series of cost-saving initiatives, made changes to our workforce and streamlined our processes to enhance the efficiency of our operations.
“We have acted with urgency and accomplished a lot in a short period of time, and I am grateful for your efforts. I also recognise that all of this change was not easy, but it was necessary to position our organisation for the future.”
The CEO further stated that the company was “proactively preserving” its liquidity, while waiting on a government payment under the Coronavirus Aid, Relief and Economic Security Act.
