Fashion retailer Express has announced the resignation of CEO Tim Baxter and the appointment of Stewart Glendinning as the new CEO and member of the board of directors. The company has been facing declining sales and increased expenses, resulting in a 6% decrease in consolidated net sales profits compared to the same period last year. In an effort to reduce costs, Express plans to cut 150 jobs, with a charge of about $5 million. The new CEO is expected to bring fresh thinking and strategies for profitable growth to the company.
Express has acquired the menswear brand Bonobos from Walmart for $75 million in partnership with WHP Global, with WHP Global acquiring the Bonobos brand for $50 million and Express acquiring the operating assets and assuming related liabilities of the Bonobos business for $25 million. Walmart bought Bonobos for $310 million in 2017 but struggled to make the brand profitable. The deal is expected to close in Q2 2023, after which Express will have the right to use the intellectual property acquired by WHP to run the Bonobos business.
Express and WHP Global are buying menswear brand Bonobos from Walmart for a combined purchase price of $75 million, a fraction of the $310 million Walmart paid for it in 2017. The deal is expected to create shareholder value and spur growth for Express, which is partially owned by WHP. Bonobos, which began as an online-only brand in 2007, has expanded to about 60 brick-and-mortar locations, with 2022 net sales of more than $200 million. Express shares soared 23% in after-hours trading following news of the deal.
Walmart is selling Bonobos, a menswear brand, for $75 million to fashion retailer Express and management firm WHP Global. WHP Global will buy Bonobos's brand for $50 million, while Express will acquire Bonobos's operating assets and assume the related liabilities of the business for $25 million. This move is a sign that Walmart is unwinding some of its e-commerce plays.
Walmart has sold menswear brand Bonobos to brand management firm WHP Global and Express in a $75 million deal. WHP will acquire the Bonobos brand for $50 million, while Express will get Bonobos's operating assets and related liabilities for $25 million. As part of the deal, Express will enter into a licensing agreement with WHP that will allow it to run Bonobos in exchange for royalty fees. Walmart originally purchased Bonobos in 2017 for $310 million while it was attempting to grow its online presence and compete with Amazon under former e-commerce President Marc Lore.
