(Reuters) - Apparel retailer Express is preparing for debt restructuring and a possible bankruptcy within weeks, the Wall Street Journal reported on Monday, citing people with knowledge of the matter.
Express' shares, which were down about 59% in 2023, fell 23% to $2.85 in extended trading.
The company has been struggling with soft consumer demand for its brands such as Express and UpWest, but it's still trying to avoid filing for bankruptcy by restructuring debt outside of chapter 11, according to the report.
The Bonobos-parent had hired restructuring adviser M3 and law firm Kirkland & Ellis as it looked to restructure nearly $280 million of debt, the WSJ reported.
In November 2023, the company said that it would continue to conduct a comprehensive review of its business model to reduce costs.
Express did not immediately respond to a Reuters request for comment.