At least one lender to Express Inc. has approached the retailer to put aside a pool of money for expenses tied to a potential future bankruptcy filing, Bloomberg News reported. A demand to set aside so-called cash reserves, if enforced, could push Express into chapter 11 as it would eat into limited liquidity available for necessary payments to vendors, landlords and other parties, said the people, who asked not to be identified discussing private negotiations. Creditors have been growing increasingly antsy and considering whether to push the company to file for bankruptcy, Bloomberg previously reported. Express, which is burning through a short supply of cash as it attempts to fix troubled operations, is looking to avoid any move to fund reserves for as long as possible. The retailer lost over $150 million in three quarters through late October as it faced an escalating competitive threat from fast-fashion rivals. More of its major creditors would have to join the request in order for it to mandate action on the part of Express. Lenders to the retailer include Wells Fargo & Co., Bank of America Corp., Hilco Global and Gordon Brothers Group.
