Apparel retailer Express is preparing for a debt restructuring that could include filing for bankruptcy within weeks, WSJ Pro Bankruptcy reported. The Ohio-based retailer known for its affordable office wear has hired restructuring adviser M3 and law firm Kirkland & Ellis to consider how to restructure nearly $280 million of debt amid declining sales. Publicly traded Express is still trying to avoid filing for bankruptcy by restructuring debt outside of chapter 11, the people said. Whether that is successful will depend on its lenders agreeing to provide more liquidity or loosening repayment options. Express’s ability to avoid bankruptcy also hinges on whether vendors are willing to keep shipping goods without tightening payment schedules. Express shares fell 12% to close at $3.75 on Monday after the news of a possible bankruptcy filing. The shares were down 23% to $2.90 in after-hours trading, and are down about 98% since August 2021. Express, which operates more than 600 retail and outlet stores, has said the business has struggled because of higher interest rates, slower store traffic, lower consumer spending and increasing competition from other retailers selling similar clothing at a deep discount. Its inventory also isn’t in line with what customers demand, the company has said.
