Retailer and former meme stock Express (NYSE:EXPR) just filed for Chapter 11 bankruptcy protection. EXPR stock traded for as much as $142 per share during the meme stock mania of early 2021. Shares returned to “pre-meme” prices by September 2022, however.
Shares of Express are currently selling for around 51 cents as of this writing. Express has a market capitalization of just around $2 million.
Who Wants Express?
Earlier today, Express received a non-binding letter of intent to be acquired by a group led by WHP Global. Participants in the group include a Simon Property Group (NYSE:SPG) subsidiary and Brookfield Properties. The company has also received a $35 million commitment in funding from lenders.
As part of its reorganization plan, Express plans to close more than 100 of its 530 stores, including all UpWest locations. The company insists that normal retail operations will continue at its other outlets.
If the acquisition goes through, WHP will control Express’ remaining stores and operations. WHP already controls a host of retail names, including Toys R Us, Bonobos and Anne Klein. The company is led by CEO Yehuda Shmidman, who has been involved in brand licensing for years.
EXPR stock received a delisting notice from the New York Stock Exchange on March 6. Shares have traded over-the-counter (OTC) since then.
Earlier this year, WHP also teamed up with Guess (NYSE:GES) to acquire New York fashion retailer Rag & Bone. Guess bought the operating assets for $56.5 million while Guess and WHP “jointly own the [Rag & Bone] intellectual property.”
What Happens Next?
What’s going on with Express is par for the course. Most mall stores today are owned by mall operators, working with brand recyclers like WHP Global.
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On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
