Shopping centers thrive when they are filled with tenants that attract people.
Many visits to shopping centers are made for no reason. You're not buying to satisfy a need, but instead view the trip as part treasure hunt and part entertainment.
If you need something, that's a different type of visit. You may be willing to walk past empty stores if you have to buy shoes to wear with a tuxedo or if you want a specific brand of yoga pants. But no one goes to a decimated shopping center just to walk around.
Related: Another popular restaurant chain files for Chapter 11 bankruptcy
These habits require mall operators to do everything they can to keep them full. And that's been a challenge as several major retail chains, including Macy's, have been closing hundreds of stores, while others have failed completely.
The situation has pushed two major shopping center owners, Simon Property Group. (AAP) and Brookfield Properties, to buy out some of its struggling tenants. The two real estate companies have partnered to buy Brooks Brothers, Forever 21 and JC Penney, among other brands.
Basically, mall operators can't afford to see more retail chains go out of business and leave vacancies in their malls. Buying out their tenants seems like a desperate measure, but thanks to several partnerships, the two mall operators have been able to change the brands they own and keep them functional.
Now, Brookfield and Simon have become owners of another historic mall retailer.
Be the first to see the best deals on cruises, special departures and more. Subscribe to the Come Cruise With Me newsletter.
Image source: Hanna Lassen/Getty Images
Express went bankrupt with a plan
Express entered bankruptcy with a ready-made plan that would be bought by a group that included WHP Global, the New York brand manager.
In its Chapter 11 bankruptcy filing, the company received a commitment of $35 million of new financing from some of its current lenders, subject to court approval. Additionally, on April 15, 2024, the company received $49 million in cash from the Internal Revenue Service related to the Cares Act.
More retail:
- Whole Foods Makes Major Change Customers Will Notice Right Away
- Bankruptcy Watch: Popular retailer stops accepting orders and its website is down
- amazon-style-feature-shoppers-will-love”>Walmart's rival launches an amazon perk that should scare away the competition
The retailer tried to reassure its customers that it would be business as usual.
“We continue to make significant progress refining our product range, driving demand, connecting with customers and strengthening our operations,” Express CEO Stewart Glendinning said at the time of the presentation.
“We are taking an important step that will strengthen our financial position and allow Express to continue advancing our business initiatives. “WHP has been a strong partner of the company since 2023 and the proposed transaction will provide us with additional financial resources, better position the business for profitable growth and maximize value for our stakeholders.”
Sign up for the Come Cruise With Me newsletter to save money on your next (or first) cruise.
Express will emerge from bankruptcy and close a brand
As part of the Chapter 11 bankruptcy process, Express plans to close about 95 Express retail stores and all UpWest stores. Closing sales at affected stores have already begun (and in some cases concluded).
UpWest, while not as well-known as its parent brand, appears to continue as a digital-only brand.
The company, using the motto “Convenience for Good,” says its “purpose is to provide convenience.” The company explained: “We are on a mission to positively impact people and the planet through our clothing and our causes. From striving to use conscious materials in our garments to supporting those in need, we invite you to join us on our journey towards comfort forever.”
Want the latest cruise news and deals? Subscribe to the Come Cruise With Me newsletter.
Express received court approval for its bankruptcy plan on June 14. It will be purchased by Phoenix Retail, “a newly formed joint venture comprising shopping center owners Simon Property Group, Brookfield Properties, Centennial and brand equity and management firm WHP Global.” Retail Diving reported.
The court approval “and the formation of Phoenix marks a vital step in our mission to save Express Inc. and continue serving millions of customers who love the Express and Bonobos brands,” WHP Global CEO Yehuda Shmidman said in a release.
“With the restructuring actions achieved during the Chapter 11 process, we believe Express is now well positioned for a powerful path forward, benefiting all stakeholders, including our valued supplier partners, licensees, owners and dedicated team.”
Related: A veteran fund manager picks his favorite stocks for 2024
