Here comes the bankruptcy.
In a move sure to send already on-edge brides into a panic, David’s Bridal filed for Chapter 11 bankruptcy protection Monday.
There’s no need to freak out though. The bridal gown and special occasion shop vows that all orders will arrive on time and wedding dress appointments will not be affected. Customers can also continue to shop at the brand’s more than 300 stores, as well as online.
The bankruptcy allows for restructuring and the deal with the chain’s lenders with get rid of more than $400 million in debt. In addition, David’s Bridal has commitments of more than $60 million in new debtor-in-possession financing from its current lenders and a recommitment of its existing $125 million asset-backed loan to help business continue as usual during the restructuring.
“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,” Scott Key, chief executive officer of David’s Bridal, said in a statement. “Our team is laser focused on providing brides and their families with the five-star service and experience they deserve and have come to expect from us.”
“The plan will allow us to reduce our debt significantly while continuing to run our business as usual,” Key added. We will be able to move through the court process very quickly, and in the end, we will be able to allocate even more of our resources towards making strategic investments in digital technologies and talent that will drive long-term growth and operational excellence at David’s Bridal.”
The Conshohocken, Pennsylvania-based brand founded in 1950 has changed hands several times over the years and is currently owned by Clayton, Dubilier & Ricefdavi.