Express shares slide on report that retailer is headed toward possible bankruptcy filing

Shares of Express continued their steep slide Tuesday amid reports that the Columbus-based retailer may be headed towards a bankruptcy filing.

Shares fell 40% Tuesday morning, extending a steep drop over the past year that has pushed shares down to nearly $2. Shares are down 90% over the past year.

The Columbus-based retailer is preparing for a debt restructuring that includes the possibility of filing for bankruptcy within weeks, according to the Wall Street Journal, citing sources it did not name.

The retailer has hired advisers to consider how to restructure nearly $280 million of debt as sales continue to struggle, the Journal said.

Express is trying to avoid a filing for bankruptcy by restructuring debt outside of chapter 11 filing, according to the paper.

But that will depend on lenders and vendors agreeing to help by, for example, loosening repayment options and continuing to ship goods to the retailer, the paper said.

Express did not immediately respond to an email seeking comment Tuesday morning.

Express operates about 600 stores under the names Express, 60 Bonobos Guideshop and UpWest.

The retailer, known for office clothes, has struggled in recent years. On its most recent conference calls with analysts, the company's new CEO, Stewart Glendinning, acknowledged "missteps in our merchandise strategy, most notably in women’s, where we were out of balance across categories, price points and wearing occasions."

Last August, the retailer said it was cutting 150 jobs as part of a plan to reduce costs. In 2020, it announced plan to close 100 stores.

The retailer reported a loss of $36.8 million, or $9.83 per share, for the three-month period that ended Oct. 28, its most recent quarter. Sales totaled $454 million.

mawilliams@dispatch.com

@BizMarkWilliams