Mall retailer Express plans to close more than 100 stores as part of a bankruptcy protection proceeding, with an investor group that includes two of its landlords, Simon Property Group and Brookfield Properties, seeking to buy most of its assets.

To facilitate the sale, Columbus, Ohio-based Express said it had filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. The apparel seller added that it has a nonbinding letter of intent from a consortium led by brand manager WHP Global, a stakeholder in the retailer, as well as mall giants Simon and Brookfield for the potential sale of "a substantial majority" of the its retail locations and operations.

Express said it will be working to "right-size its lease portfolio and operations," shutting about 95 Express stores and all its UpWest stores. As of March, Express had roughly 530 Express and Express Factory Outlet stores, about 60 Bonobos Guideshop locations and 12 UpWest stores. Closing sales at the affected stores start Tuesday, with properties slated to be vacated by June 30 as Express assesses its store footprint with A&G Realty Partners with more closings possible.

The announcement adds to the growing list of retail bankruptcies and store closings this year, and is another example of mall landlords like Simon looking to acquire a stake in some of the troubled retailers that lease space in their properties. So far this year Joann, the leading U.S. seller of sewing supplies, discounter 99 Cents Only Stores and beauty goods seller The Body Shop have filed for Chapter 11.

And the 100 Express store shutterings are on top of the 2,418 U.S. store closing that had previously been announced for this year, according to Coresight Research. It cited an estimated 272 closures by convenience chain 7-Eleven in that count, and 371 stores by 99 Cents Only. Over the next few years Dollar Tree plans to shut 1,000 Family Dollar locations and Macy's will close 150 department stores.

And the sale offer for Express, known for its business-casual apparel, is another case of Indianapolis-based Simon and a Brookfield company looking to take ownership and keep afloat a retailer that's one of their tenants. Simon and Brookfield Asset Management acquired department-store chain J.C. Penney out of bankruptcy in December 2020. And Simon — in partnership with Authentic Brands Group — has bailed other retailers out of Chapter 11, as well, including Aéropostale, Forever 21, Lucky Brand, and Brooks Brothers.

"The property companies have a vested interest in Express sticking around as they don’t want vacancies in their malls," Neil Saunders, retail analyst and managing director of GlobalData, said in an email to CoStar News. "The issue is that Express is broken and the brand and proposition need to be fixed. That’s something that any new owner will need to address. That the property firms are in a consortium with WHP, which does have expertise in brand management, provides some comfort that things will get fixed. Without the reinvention, the property companies are just keeping dying stores open and it will do very little to boost foot traffic into their malls."

WHP invested $260 million in Express in December 2022, getting a a 7.4% stake in the retailer. The New York-based company previously bought the Toys R Us and Babies R Us brands in 2021, and has been resurrecting those two chains. It debuted flagship stores for both chains at the American Dream megamall in East Rutherford, New Jersey. And Toys R Us shops have rolled out at Macy's stores, while Babies R Us is coming to Kohl's.

Express declined to comment on Saunders' comments. WHP and Simon didn't respond to emails from CoStar News seeking comment about their plans for Express, and Brookfield didn't return a phone call.

One of Express's biggest woes what was that it didn't keep pace with the time and fashion, according to Saunders.

"With the company struggling to gain traction with consumers, it has been obvious for quite some time that bankruptcy was the inevitable destination for Express," Saunders said in a note to clients Monday. "The biggest problem at Express is the sales line where revenue has cratered over recent years. Indeed, compared to the same period in 2019 the latest sales numbers are down by 9.9%. This stands in marked contrast to an apparel sector that has grown strongly over the same period."

But he added that the woes at Express are not all of its own making.

"The formal and smart casual market for both men and women has softened over recent years because of a rise from working from home and the casualization of fashion," Saunders said. "This puts Express firmly on the wrong side of trends and, in our view, the chain made too little effort to adapt."

In a court filing, Express said in the past 12 months it's reduced its store fleet by about 100 stores, leaving it roughly 584 stores as of the bankruptcy petition date, and deciding another 100 need to close. The company also outlined the issues leading to the latest round of store closures.

"Over the past several years, the debtors have faced a challenging commercial environment brought on by both broader economic and retail-specific market pressures," Express said. "Major players across industries are experiencing the challenges associated with elevated interest rates and decreased consumer expenditure. However, retailers specifically contend with reduced foot traffic in malls, shopping centers, and stores, heightened competition from comparable retailers offering substantial discounts, and a disparity between inventory and customer demand. Given the expenses associated with a substantial brick-and-mortar presence, and the issues affecting the retail industry as a whole, a significant number of the debtors’ stores are operating at sub-optimal performance levels."

In a statement, Express CEO Stewart Glendinning said the company continues to make progress refining its product assortments, driving demand and connecting with customers.

“We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives," he said. "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.”

Express said its received a commitment for $35 million in new financing from some of its existing lenders, subject to bankruptcy court approval. Additionally, last week it received $49 million in cash from the Internal Revenue Service related to the CARES Act, the federal stimulus package passed during the pandemic. Express said it expects to have sufficient liquidity to support its business during the court-supervised sale process.

But the retailer also warned its stockholders "could experience a significant or complete loss on their investment, depending on the outcome of the Chapter 11 process."

Express also said it's named Mark Still as senior vice president and chief financial officer, effective immediately. Still has served as the company’s interim CFO since November, and as senior vice president, brand finance and planning and allocation since January. He has held finance roles of increasing responsibility at Express since 2005.

"Bankruptcy will allow Express to reset the business, including shutting down a number of badly performing stores," Saunders said. "The business may also find a quick resolution to its issues if an offer from WHP — which already has an interest in Express — to fully acquire the brand and stores is accepted. This would not solve all of the immediate issues, but it would at least put Express on a stable footing."

Kirkland & Ellis is serving as legal counsel to Express, Moelis & Co. is serving as investment banker, and M3 Partners is serving as financial adviser.