Today, warning bells may be signaling the end of the line for another struggling retail chain. Express (OTCMKTS:EXPR) has been struggling for months, so much so that it lost its place on the New York Stock Exchange earlier this month. When a company moves to trading over the counter after being delisted, it is often the beginning of the end. In the case of EXPR stock, that definitely seems to be the case.

Reports indicate that the fashion retailer is taking steps to file for Chapter 11 bankruptcy as soon as next week. Shares are in free fall as investors prepare for what is likely the end of the line for this once-prominent company.

This isn’t the first time this year that speculation has risen regarding Express careening toward bankruptcy. In February 2024, shares plunged on similar reports, falling to $2 per share. But now that EXPR stock is safely below the $1 mark, things look even worse. It definitely seems as though Express is on its way out.

What’s Happening With EXPR Stock

It’s been a long time since this company reported anything remotely positive. Long before it delisted from the NYSE, shares were consistently trekking downward. While these declines were slow at first, they ultimately picked up speed in what would become a clear race to the bottom. On April 3, 2023, EXPR stock traded at more than $15 per share. Exactly one year later, it is trading at $0.63, a decline of more than 95%. With that in mind, it’s not hard to see why investors might be losing faith in the struggling retailer.

Now, it seems that the company’s long list of problems has reached an unfortunate culmination. Bloomberg reports that Express is “asking its lenders for funds to help finance a potential Chapter 11 bankruptcy process, according to people with knowledge of the plans.” With that type of ominous warning, it makes sense that most investors should be running for the exit.

It’s not like Express hasn’t tried to pull itself out of the rut it’s been in for the past year. In May 2023, it acquired trendy retailer Bonobos in a clear attempt to reach new consumers. But even adding this popular label to its holdings hasn’t been enough to help EXPR stock. InvestorPlace contributor Josh Enomoto provided an in-depth analysis of the many problems facing the company, stating:

“Perhaps most tellingly, EXPR stock also succumbed to a legacy headwind. According to management, its inventory didn’t align with consumer interests. However, as Retail Dive implies, this dynamic might not be entirely Express’ fault. When the Covid-19 pandemic struck, the retailer absorbed an uppercut as its core offering — business-casual attire — fell out of favor. Essentially, it was replaced by plain casual attire.”

The End of the Line

At this point, it’s hard to see any scenario in which EXPR stock emerges from this mess and starts improving.

The Chapter 11 route is typically the end of the line for a troubled company. When Bed Bath & Beyond opted for it, the company was delisted from the Nasdaq and, a few months later, ceased trading altogether, leaving behind nothing for its investors. And unlike the fallen home furnisher, Express doesn’t have a loyal meme stock following behind it.

The way it looks from here, EXPR stock is about to meet a similar, if not identical, fate.

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On the date of publication, Samuel O’Brient did not have (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.