InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Retailer and former meme stock Express (NYSE:EXPR) just filed for Chapter 11 bankruptcy protection. EXPR stock traded for as much as $142 per share during the meme stock mania of early 2021. Shares returned to “pre-meme” prices by September 2022, however.
Shares of Express are currently selling for around 51 cents as of this writing. Express has a market capitalization of just around $2 million.
Who Wants Express?
Earlier today, Express received a non-binding letter of intent to be acquired by a group led by WHP Global. Participants in the group include a Simon Property Group (NYSE:SPG) subsidiary and Brookfield Properties. The company has also received a $35 million commitment in funding from lenders.
As part of its reorganization plan, Express plans to close more than 100 of its 530 stores, including all UpWest locations. The company insists that normal retail operations will continue at its other outlets.
If the acquisition goes through, WHP will control Express’ remaining stores and operations. WHP already controls a host of retail names, including Toys R Us, Bonobos and Anne Klein. The company is led by CEO Yehuda Shmidman, who has been involved in brand licensing for years.
EXPR stock received a delisting notice from the New York Stock Exchange on March 6. Shares have traded over-the-counter (OTC) since then.
Earlier this year, WHP also teamed up with Guess (NYSE:GES) to acquire New York fashion retailer Rag & Bone. Guess bought the operating assets for $56.5 million while Guess and WHP “jointly own the [Rag & Bone] intellectual property.”
What Happens Next?
What’s going on with Express is par for the course. Most mall stores today are owned by mall operators, working with brand recyclers like WHP Global.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
More From InvestorPlace
- The #1 AI Investment Might Be This Company You’ve Never Heard Of
- Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
- It doesn’t matter if you have $500 or $5 million. Do this now.
The post Is Express (EXPR) Stock on the Brink of Death After Bankruptcy Filing? appeared first on InvestorPlace.