David's Bridal files for bankruptcy, to stay in business
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Wedding dress retailer David’s Bridal on Monday filed for bankruptcy in the “near future,” joining other notable companies in filing for the protection amid a challenging retail environment and the rise of e-commerce.
The company said its Chapter 11 bankruptcy will shave $400 million off its overall debt load while attempting a turnaround. Lenders have agreed to inject $40 million into David’s Bridal to help the retailer stay in business during proceedings.
“David’s Bridal has been the leader in the wedding industry for over 60 years,” David’s Bridal CEO Scott Key said in a statement. “During that time, we’ve seen a lot of things change: fashion trends, where brides find inspiration and how customers shop. But one thing will always remain the same: our commitment to you, our customer. To underscore this commitment, we have announced a plan to financially restructure David’s Bridal. This agreement allows us to guarantee no change in the service level our customers expect from us.”
David’s Bridal operates more than 300 stores, all of which will remain open during bankruptcy proceedings, the company said. Wedding orders and dress alterations will be processed normally.
Like many retailers, David’s Bridal has seen sales decline amid shifting consumer tastes and tough competition from e-commerce retailers. Traditional wedding vendors have been under pressure as millennials get married later in life or choose not to do so.
Other major companies to file for bankruptcy this year include Mattress Firm, Sears Holdings and Toys R Us.