David's Bridal files for Chapter 11 bankruptcy
David’s Bridal, the largest bridal retailer in the United States said Monday it has filed for Chapter 11 bankruptcy, confirming reports it is struggling to manage its costs after emerging from bankruptcy five years ago.
The Conshohocken, Pennsylvania-based company said all stores will remain open, and will continue to operated "in the ordinary course," fulfilling all customer orders without disruption. Additionally, the company's online platforms will remain available and accessible to shoppers.
"Over the last several years, we have taken meaningful strides in our transformation to fulfill the needs of the brides of today and tomorrow. We have successfully modernized our marketing and customer interaction processes and driven our retail service levels to best in class," said James Marcum, chief executive officer of David's Bridal.
"Nonetheless, our business continues to be challenged by the post-Covid environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward. We are determined to stay focused on our future, because we believe we have an important role in ensuring that every bride, no matter her budget, can have her perfect dress."
During the bankruptcy proceedings, Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Houlihan Lokey Capital, Inc. is serving as investment banker, BRG is serving as financial and restructuring advisor, Osler, Hoskin & Harcourt LLP is serving as Canadian legal counsel, C Street Advisory Group is serving as strategic communications advisor, and Omni Agent Solutions is serving as claims and noticing agent to the company. David's Bridal has retained Gordon Brothers to assist with inventory sales.
It's not the first time the retailer has faced financial woes. In 2018, David's Bridal reached a deal with lenders to reduce its debt by more than $400 million. In 2021, the bridal company closed a $70 million loan provided by CPPIB Credit Investments, a subsidiary of the Canada Pension Plan.
The bridal wear market in the U.S. was estimated at $27 billion in the year 2022, according to a Research and Markets report. The country currently accounts for a 44.16% share in the global market, it added.
Copyright © 2023 FashionNetwork.com All rights reserved.