Hilco Global completed a successful engagement with Express as it is sold to Phoenix Retail, a new retail business and joint venture between WHP Global and mall owners Simon Property Group and Brookfield Properties. ReStore Capital, an operating company of Hilco Global and a credit focused investment manager, agented a $65 million second lien term loan to Express in September 2023, and later agented a $25 million new money debtor-in-possession term loan in support of Express’ efforts to effectuate a going concern sale of the business after filing for Chapter 11 bankruptcy protection. These loans were repaid in full from the proceeds of the sale to Phoenix Retail.
“I am incredibly proud of the collaborative efforts and the strong partnership we’ve built with Express over the past seven years,” Ian Fredericks, president and chief operating officer of Hilco Consumer – Retail, said. “Our relationship goes beyond just providing financial solutions; it demonstrates our commitment to supporting our clients through every phase of their journey. The successful sale of Express is a testament to the resilience and dedication of all parties involved. We congratulate WHP Global, Simon Property Group and Brookfield Properties on this strategic acquisition and look forward to seeing Express continue to thrive under their new ownership.”
Throughout the process, both Hilco Consumer – Retail and its parent, Hilco Global, a privately held diversified financial services company and the world’s preeminent authority on maximizing the value of assets for both healthy and distressed companies, played an integral role in partnering with both Express and its stakeholders to manage through a challenging operating period, and ultimately, accomplishing a successful sale of the business. Beyond the financing support provided by ReStore Capital, Express engaged Hilco Merchant Resources (HMR) to provide various services given their operational and asset monetization expertise. These included running store closing sales for approximately 115 underperforming stores that were non-core to Phoenix Retail’s go-forward business plan.
“The successful transition of Express is a prime example of how we leverage our extensive expertise to support businesses through challenging times and position them for future growth,” Fredericks said. “Hilco Global is a comprehensive financial services provider, offering tailored solutions that drive value and success for our clients.”
“Our enduring partnership with Express showcases Hilco Global’s extensive range of services beyond asset monetization,” Fredericks said. “By providing strategic financial solutions and operational expertise, we have supported Express through various phases, culminating in a successful transition. This collaboration exemplifies our commitment to being more than just a financial partner – we are a catalyst for sustainable growth and success. We are excited to see Express continue to flourish under WHP’s stewardship.”
“Hilco Global has often experienced the mischaracterization in the marketplace of merely serving as a ‘liquidator’ of businesses,” Fredericks said. “This stigma has further contributed to the ‘lend-to-liquidate’ moniker following the launch of Hilco Global’s ReStore Capital platform in 2020. While ReStore Capital does leverage Hilco Global’s asset valuation and monetization expertise, allowing us to lend deeper into asset values at a higher rate of conviction than others in the market, Hilco Global’s ability to monetize such assets securing ReStore Capital’s loan portfolio merely serves as a hedge to ensure repayment in full of their loan exposure.”
Other stakeholders include:
- ABL Agent: Wells Fargo
- ABL Participants: Bank of America, Fifth Third Bank. U.S. Bank National Association
- ABL Counsel:Goldberg Kohn
- Term Loan Participants: First Eagle Alternative Credit and Gordon Brothers
- Term Loan Counsel: Ropes & Gray
- ABL & Term Loan Advisor: AlixPartners
- Store Closing JV Partner: Gordon Brothers
- Company Counsel: Kirkland & Ellis
- Company Financial Advisor: M3 Advisory Partners
- Company Investment Banker: Moelis