News & Trending Debt & Bankruptcy News

Iconic 80s Mall Brand Considers Bankruptcy, Report Says

Popular clothing retailer Express is reportedly considering bankruptcy as it grapples with changing consumer trends and mounting debt.

Bankruptcy highlighted on paper
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Remember those days of scoring the perfect outfit at Express, from polished workwear to trendy club looks? While many of us have fond memories of this once-popular retailer, Express is facing some tough times. The company is reportedly in talks with lenders to secure funding for a Chapter 11 bankruptcy filing, according to a Bloomberg report.

The fashion retailer has been struggling to keep up with changing consumer preferences and fierce competition, especially as consumers look to avoid wasting money post-pandemic. This shift in spending habits has left Express in a vulnerable position.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Low-cost fast fashion hits sales

Rido/Adobe woman doing online shopping

Express has faced several challenges in recent years, including shifting consumer tastes and faster fashion cycles.

The rise of low-cost, online ultra-fast fashion retailers like Shein and Temu has further squeezed Express' market share, the report said.

Express's financial woes are undeniable

Skórzewiak/Adobe Crisis and stock markets down chart

A once-valuable brand, Express has seen its market value evaporate. The company’s stock price has taken an 80% hit this year, Bloomberg reported.

Express lost over $24 million in market capitalization this year and now is worth $2.25 million as of April 5. This is down from a market cap of around $27 million as measured on January 31. The company's market cap has decreased by over 96% in one year.

According to the report, this dramatic decline reflects investor concerns about the company's ability to turn things around. Meanwhile, their debt burden of nearly $300 million adds a layer of pressure to their already difficult situation, the report said.

Possible outcomes

agcreativelab/Adobe clothes on racks in a fashion boutique

A Chapter 11 bankruptcy filing could provide the Columbus, Ohio-based retailer an opportunity to streamline operations and potentially find a buyer. However, it also carries risks, including potential store closures and job losses.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Bottom line

Hero Design/Adobe red shopping bag with bookeh background

With a potential bankruptcy filing looming, the future of Express remains uncertain. The company needs to find a way to adapt to the changing retail landscape and regain consumer interest.

While Express's decline can likely be attributed to various factors, including consumers tightening their belts and seeking ways to save money shopping, it also underscores the critical need for adaptability and innovation in an ever-changing industry.

Editor's Note: Generative AI tools helped write this story.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details