(Bloomberg) -- Express Inc. said it could be forced to liquidate if the bankrupt clothing retailer can’t complete a proposed buyout relatively quickly.

The company has lined up $35 million in new financing to fund itself while in Chapter 11. But Chief Executive Officer Stewart Glendinning said in a sworn statement that funding requires Express to pivot to a liquidation process if it can’t reach “a firm deal within 30 days.”

Unless the retailer is restructured quickly, the cost of the Chapter 11 case “will take over the company,” Express lawyer Josh Sussberg said during a court hearing Tuesday in Delaware. “Time is not endless.”

Express, which filed for bankruptcy Monday, concurrently announced a proposed sale to a group led by mall owners Simon Property Group and Brookfield Properties. Sussberg described the offer during the hearing as a letter of intent, not “an enforceable asset purchase agreement.” 

But he said Express and its lenders are optimistic they’ll be able to capitalize on the offer and ultimately complete a deal that would save the business and thousands of jobs. Sussberg added the company will explore alternative transactions in Chapter 11.

The retail chain, like other mall-based peers, has struggled for years with declining in-store sales along with changing consumer tastes and online competition. Express has a $67.5 million operating loss and $157 million of negative operating cash flow for the 2022 fiscal year, according to court documents. The company said it intends to close around 95 of its more than 500 stores.

Simon and Brookfield have offered to team up with WHP Global, a firm that owns and licenses brands. The joint venture, dubbed “PHOENIX”, would continue a trend of once-popular mall retailers getting bailed out by landlords that have a major stake in their success.

The case is Express Inc., number 24-10831, in US Bankruptcy Court in Delaware (Wilmington).

--With assistance from Eliza Ronalds-Hannon.

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