David’s Bridal filed for Chapter 11 bankruptcy protection on Monday. Running more than 300 stores, they are the largest retailer in the US, and are the latest company to fall victim to the surge in online shopping and decline in marriages in the United States.
The agreement should allow the retailer to stay in business, but reduce its debts by more than $400 million.
The court-supervised Chapter 11 process is expected to be completed by early January, but in a statement David’s Bridal said; “Customers can continue to shop across the more than 300 David’s Bridal stores and online without disruption.” They added,“Orders will arrive on time and bridal appointments will not be impacted.”
CEO Scott Key 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,”
“We are implementing our consensual restructuring plan from a position of strength and, with the support of our lenders, noteholders and equity holders, the plan will allow us to reduce our debt significantly while continuing to run our business as usual
David’s Bridal said Monday it’s received commitments for $60 million in new debtor-in-possession financing from existing lenders, along with a recommitment of its existing $125 million asset-backed loan, which will help it stay open for business during restructuring.
