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Beneficient Faces Lawsuit Over 'Looting' of Shareholder GWG; Express Files Bankruptcy; WeWork Landlords Fight Back
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Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Tuesday, April 23. In today's briefing, A trustee representing Beneficient’s largest shareholder sued the financial firm and its chairman and chief executive, Brad Heppner, accusing him of enriching himself through an “elaborate shell game.” Mall staple Express filed for bankruptcy, hoping to seal a deal with brand manager WHP Global. And WeWork faces objections from landlords to its lease renegotiation efforts.
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Brad Heppner, left, the chairman and chief executive officer of Beneficient. PHOTO: TIM CARPENTER/KANSAS REFLECTOR
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Beneficient’s Heppner faces lawsuit alleging ‘corporate looting’ of shareholder GWG. A trustee representing Beneficient’s largest shareholder sued the financial firm and its chairman and chief executive, Brad Heppner, accusing him of enriching himself through an “elaborate shell game” that involved fraud, backdated documents and false statements.
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Express said it plans to close about 95 of its namesake retail stores, along with all of its UpWest stores, as part of the bankruptcy process. PHOTO: JOE RAEDLE/GETTY IMAGES
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Apparel retailer Express files for chapter 11 bankruptcy. Clothing retailer Express has filed for chapter 11 bankruptcy with initial plans to close stores and sell most of its remaining locations and operations.
The retailer said it has received a nonbinding letter of intent from a group led by brand-management firm WHP Global for the potential sale of most of its remaining stores and operations. The WHP-led group includes mall owners Simon Property Group and Brookfield Properties, both of which teamed up in 2020 to rescue department-store chain J.C. Penney out of bankruptcy.
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Background: Express is among major merchants, including craft retailer Joann and discount chain 99 Cents Only Stores, that have filed for bankruptcy this year. The retail sector has in recent years faced both broad economic and sector-specific pressures, including higher interest rates, an inventory surplus and lower foot traffic in malls and stores.
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WeWork landlords object to request for more time to restructure leases. CoStar Group has joined two other WeWork landlords objecting to the co-working space provider’s request to extend the time to reject or assume leases in bankruptcy.
CoStar became a WeWork landlord in February when it acquired a 552,000-square-foot office building in Arlington, Va. After the sale closed, CoStar told WeWork that it “will not be entertaining any proposed amendment or modification of the lease.”
WeWork’s 120-day period to examine its pre-existing lease expired in early March. The company is seeking court approval for a 90-day extension, but a hearing to consider the request has been delayed multiple times.
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