Office fashion retailer Express to close 7 NJ stores

Mall clothing retailer Express has announced plans to file for Chapter 11 bankruptcy protection and shutter 95 of its 530 stores across the U.S. — including one in Freehold Township — as the chain struggles with work-from-home and its own management decisions.

The trending casual office attire store has struggled to compete with such stores as Zara and H&M, and retail analyst Neil Saunders said Express has seen demand for its products nosedive as more people work from home or work in the office with more casual fashion.

“The formal and smart casual market for both men and women has softened over recent years,” Saunders said.

It joins fabric and crafts retailer

Joann, which filed for bankruptcy in March.

Express owns the brands Bonobos and UpWest, and it plans to conduct “business as usual” during the closures, which were expected to start Tuesday.

Potential acquisition target

Meanwhile, a group of investors led by the brand management and acquisition company WHP Global — which owns Toys R’ Us — is eyeing a potential purchase of Express, though the plans are not set in stone.

In the bankruptcy filing, made in the federal court in Delaware, Express said it filed for Chapter 11 protection “to facilitate the sale process.”

“We are taking an important step

that will strengthen our financial position and enable Express to continue advancing our business initiatives,” said Express CEO Stewart Glendinning.

“WHP has been a strong partner to the company since 2023, and the proposed transaction will provide us additional financial resources, better position the business for profitable growth and maximize value for our stakeholders,” he continued.

The consortium eyeing the deal includes commercial real estate firms Simon Property Group — which owns The Mall at Short Hills, Rockaway Townsquare and The Shops at Riverside — and Brookfield Properties, which owns Paramus Park and Wayne’s Willowbrook Mall.

Express said in the bankruptcy filing that it had almost $1.2 billion in total debt compared with its $1.3 billion in assets.

The overall assortment of Express clothing “is poor in that it is overpriced, lacks differentiation, and comes across as very bland,” said Saunders, the retail analyst.

“As a result, the Express brand itself has become less relevant to shoppers. In many ways, Express is the archetypal middle-market mass retailer that consumers are increasingly willing to either cut out of the portfolio of stores they visit, or buy less from, as they look to save money,” Saunders said.

Glendinning admitted in a November earnings call that there were “missteps” in its clothing selection and merchandising strategy, “most notably in women’s” clothing.

But retail bankruptcies picked up in 2023 — from five in 2022 to 26 in 2023, said the accounting firm BDO, which tracks retail bankruptcies.

What stores in New Jersey are affected?

All of Express’ brands are still fulfilling orders and processing returns. Its merchandise policies remain unchanged, and gift cards and store credits are currently being redeemed in stores.

Of the 25 locations in New Jersey, seven will close, each in a mall:

● Deptford Mall, Deptford.

● Freehold Raceway Mall, Freehold Township.

● Garden State Plaza, Paramus.

● Hamilton Mall, Mays Landing.

● Livingston Mall, Livingston.

● Moorestown Mall, Moorestown.

● Woodbridge Center, Woodbridge.