According to the Wall Street Journal Express Inc has hired advisor M3 and law firm Kirkland and Ellis to advise it on discussions with lenders.
WSJ, citing people with knowledge of the matter, claimed the debt restructuring could include filing for bankruptcy within weeks.
The reports come shortly after Express Inc published its third-quarter financial results in which it received wider losses during the first nine months of the year.
Express Inc booked a net loss of $154.2m versus $39.3m a year earlier. Operating losses increased to $138.4m versus a loss of $28.2m a year earlier.
Net sales fell to $1.27bn from $1.35bn a year earlier while gross profit slid.
At the time Express Inc indicated a plan to review the business model and identify actions “expected to meaningfully reduce pre-tax costs and enable a more efficient and effective organisation.” It said it had engaged external advisors to assist in this effort and reiterated its goal to deliver over $200m in annualised savings by 2025 versus 2022.
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By GlobalData
The company is also aggressively pursuing at least $50m in gross margin expansion opportunities by leveraging efficiencies in sourcing, production and the supply chain.
Express Inc and Kirkland and Ellis did not respond to reports for comment when approached by Just Style.
Glendinning was appointed in September after the resignation of Tim Baxter.
Before joining Express, he held the position of group president, of prepared foods at Tyson Foods, Inc., where he oversaw all facets of the prepared foods portfolio, including well-known brands such as Jimmy Dean, Hillshire Farm, and Ball Park.
Under his leadership, this business segment achieved robust volume growth and increased market share across its retail brand offerings. Glendinning also served as chief financial officer of Tyson Foods with responsibilities encompassing global financial planning, finance, and accounting functions.
