David's Bridal expected to file for bankruptcy within days
today Nov 15, 2018
David's Bridal is expected to file for Chapter 11 bankruptcy within days, requesting court protection from creditors as it wrestles with approximately $760 million in debt.
The wedding dress chain has been contemplating bankruptcy for weeks, and aims to keep its stores open and in business throughout the process, people with knowledge of the matter told Bloomberg.
Plans for the bankruptcy involve a restructuring and reorganization plan that would relinquish ownership of the company to senior lenders like Oaktree Capital Group LLC, the source said. The company is currently owned by private equity investment firm Clayton, Dubilier & Rice.
The company reportedly plans to use money from first-lien loan holders to maintain stores throughout the country, keeping business afloat as the year's most popular season for wedding dress shoppers approaches; many proposals follow the New Year's holiday and December is the most popular month to get engaged, according to wedding planning site The Knot.
“Our financial outlook is strong and we have ample liquidity to meet our key business objectives today and in the future,” the company said in a statement emailed to Bloomberg. “We do not expect this process to materially impact our business or interfere with day-to-day operations or our relationships with customers and vendors.”
Rumors of the company's journey toward restructuring and bankruptcy began in October, after the company skipped a key debt payment.
David's Bridal currently operates more than 300 stores throughout the United States and Puerto Rico, Canada and the United Kingdom.
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