Express and Bonobos acquired by Phoenix Retail
A new retail operating platform called Phoenix has acquired most of Express Inc.'s assets, including its Express and Bonobos brands.
Transaction snapshot
Deal value: $174 million ($136 million cash, $38 million assumed liabilities)
Deal multiples: N/A
Deal type: Acquisition out of bankruptcy
Investors: Phoenix Retail (backed by WHP Global, Simon Property Group, Brookfield Properties, Centennial Real Estate)
Phoenix will operate all direct-to-consumer commerce for Express and Bonobos in the US. This includes over 450 physical stores and e-commerce operations. The deal preserves nearly 7,000 jobs across the country.
The acquisition follows Express Inc.'s Chapter 11 bankruptcy filing in April 2024. Phoenix received court approval for the purchase on 14 June 2024, with the transaction closing on 21 June 2024.
WHP Global led the buyout effort. Chairman and CEO Yehuda Shmidman said the deal marks "a vital step in our mission to save Express Inc. and continue serving millions of customers who love the Express and Bonobos brands".
Phoenix aims to run a "financially revitalised DTC retail platform" for Express and Bonobos, setting "the stage for long-term growth". The company plans to keep Express' remaining 450 stores open.
As part of the initial bankruptcy, all UpWest locations and 95 Express stores were closed in April. The remaining Express and Bonobos stores have continued normal operations through the sale process, as have the websites of all three brands. Bonobos' wholesale operations also continue uninterrupted.
Simon Property Group CEO David Simon stated on an earnings call in May 2024 that the Express buyout would require no capital from his company.
This deal mirrors previous partnerships between Simon Property Group and brand management firms to rehabilitate struggling retail brands. It comes after Simon sold its stake in Authentic Brands Group for $1.2 billion in May 2024 and reduced its share in the SPARC Group joint venture from 50% to 33% in October 2023.
Express had previously partnered with WHP Global in December 2022 in an attempt to turn the business around. This partnership transformed Express, Inc. into a multi-brand fashion retailer by bringing together Express, Bonobos and UpWest brands.
Despite hiring former Tyson Foods executive Stewart Glendinning as CEO in September 2023 and initiating a restructuring effort in February 2024, Express was delisted from the New York Stock Exchange on 6 March 2024 due to underperformance.
The acquisition provides much-needed stability for Express, which has seen revenues decline by about 10% since 2019. The company has struggled with increased competition from brands like Zara and H&M, as well as changing consumer preferences due to remote work trends.
