Express, Inc.’s new boss is a retail branding guru
The bankruptcy of apparel retailer Express, Inc. was long anticipated and widely anticipated. Like the collapse of Bed Bath & Beyond a year ago, Express’ story of Wall Street vultures looting another debt-ridden company sounded familiar at first.
In the case of BB&B, there was no untapped value in the brand. Overstock bought it for just $21.5 million. He quickly made a big profit by liquidating real estate assets estimated to be worth $250 million. His once iconic BB&B brand is now just a memory.
However, a second look at Express’ bankruptcy reveals a brand with a positive outlook for the future, rather than a carcass that was picked up.
The new owner is WHP Global, a relatively young retail brand investment and management firm based in New York that has been underperforming.
WHP specializes in acquiring underperforming or undervalued brands with potential. Just five years after opening, WHP announced that its portfolio, which includes Toys R Us, Bonobos, Anne Klein and Isaac Mizrahi, generates $7 billion in annual revenue.
Express, Inc.’s new boss is WHP founder Yehuda Schmidman. He is a native New Yorker, and his first job while in college was in a startup brand licensing venture. In 2003, Schmidman, then just in his 20s, is credited with co-designing a then-pioneering partnership between designer Isaac Mizrahi and Target. In 2011, at the age of 29, he was included in Crain’s Elite List.40 under 40” A talented New York professional.
According to Mr. Schmidman recently, Published comments For corporate-related websites, it’s a great time to become a buyer of intellectual property. The pandemic has led to a glut of distressed brands whose owners are willing to part with their products. Supply is good, he says. And demand is low.
“Currently, there are few buyers on the table who are willing to invest in brands as we wait for the macro environment to stabilize. With more brands on sale and a smaller number of qualified buyers, We have reached the busiest IP market in memory.”
Schmidman said WHP’s strategy is reflected in its motto: “Partner or perish.”According to reports on industry news sites fashionunited.com“WHP Global regularly collaborates with other parties on acquisitions. For example,[a year ago]we partnered with Express to acquire Bonobos.”
For all of the reasons listed above, and one reason that may explain others, the future of Express looks brighter than the headlines suggest. That said, Schmidman has a real passion for what he does. When bidding on brands, “we aim to be the buyer of choice.”
He recalled the 2021 acquisition of Toys R Us as “one of the most exciting and emotional brands we’ve ever developed because of the nostalgia factor.” Many of us at WHP are former Toys R Us kids. It’s been fun growing up with the brand and now being part of its resurgence. ”
Schmidman predicts that the brand management business is at the beginning of a long boom.
Some of us in retail are looking forward to seeing the next generation of leaders like him bring youthful enthusiasm and creativity to an industry struggling to adapt to the new normal. .
