On November 5th David’s Bridal filed Chapter 11 bankruptcy. The nation’s largest wedding retailer entered into a pre-packaged agreement with the majority of the lenders, note holders and equity holders. The company hopes to finish the bankruptcy restructuring by early January. Business will continue as usual during the court-supervised process.
Customers Can Continue Shopping
Scott Key, David’s Bridal CEO said in a statement “For more than 60 years, David’s has delivered beautiful, high-quality dresses and accessories for our customers most special occasions, and the actions we are taking will enable us to build on that tradition”. He went on to say “Customers can continue to shop across more than 300 stores and online without disruption.”
David’s Bridal is losing sales for many reasons:
- Americans are getting married at later ages or avoiding marriage altogether.
- Several other retailers offer less expensive bridal collections.
- Many Americans are buying dresses online.
- Some brides are looking for less costly weddings.
- Non-traditional dresses are becoming a trend.
- The market is becoming saturated with bridal wear.
Hoping for New Financing
The bridal chain is hoping to reduce its $760 million debt by $400 million in new financing, allowing the company to continue operations.
In 2012, David’s Bridal was purchased by Clayton, Dubilier & Rice, a private equity firm for approximately $1.05 billion. Part of that debt is added to the Chapter 11 restructuring.
Another bridal store Alfred Angelo recently liquidated its business last year, unable to compete with the marketing trends.
If you are facing the loss of your home or failure of your business, contact a Houston bankruptcy attorney to discuss what options you may have.