Owner of Toys R Us, Anne Klein to acquire Columbus-based Express Inc.
COLUMBUS, Ohio (WCMH) – After Columbus-based Express Inc. recently filed for bankruptcy, a new owner is taking over the company and plans to continue operating hundreds of the brand's retail stores.
A United States Bankruptcy Court judge approved the sale of Express Inc. to a group of companies led by WHP Global, which initially announced its hope to acquire the company shortly after Express Inc. filed for Chapter 11 bankruptcy protection in April.
The purchase price for the brand is $174 million and the deal is expected to close this week. The consortium taking over Express is a newly formed retail operating platform dubbed “Phoenix.” The group is a collaboration with WHP Global, Simon Property Group, Brookfield Properties and Centennial Real Estate.
WHP Global owns a dozen brands, including Toys R Us, Babies R Us, Anne Klein, Isaac Mizrahi and Joseph Abboud. The investment company’s portfolio collectively generates more than $7 billion in global retail sales annually, the company claims.
Phoenix will “set the stage for long-term growth for the Express and Bonobos brands,” a news release from WHP Global states. The consortium said it will continue to operate over 450 physical stores as well as e-commerce operations, preserving about 7,500 jobs across the country.
In a Worker Adjustment and Retraining Notification, or WARN, notice filed with Ohio in April, the company said if restructuring efforts fail or the buyer fails to provide a sufficient number of job offers to current employees, all 614 corporate office employees would be permanently laid off. In the notice, the company stated the possible layoffs are expected to occur in late June. Express has not clarified if the Columbus layoffs will still take place.
After the bankruptcy announcement, Express initially stated it planned to close more than 100 stores nationwide – some have already been shuttered, and others are expected to close by June 30. Bloomberg reports that Express Inc. Chief Financial Officer Mark Still said in a statement that the now-approved sale will allow the company to keep almost all remaining locations open.
Express has 11 stores in Ohio, including at Easton and Polaris Fashion Place. The state is home to one Bonobos store in Columbus’ Victorian Village neighborhood. According to the company, two Ohio stores — Express stores in Toledo and Liberty Township — will soon close.