David’s Bridal files for bankruptcy: How it will impact brides

Credit: DaytonDailyNews

David’s Bridal has voluntarily filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code in the District of Delaware.

The bridal retailer announced last week it reached an agreement with its senior noteholders and equity holders on the terms of a restructuring support agreement that will reduce the company's debt by more than $400 million. The company said its 300 David's Bridal stores and online marketplace will continue operating without disruption.

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Orders will arrive on time and bridal appointments will not be impacted, according to Scott Key, chief executive officer of David’s Bridal. David’s Bridal has a location in Miamisburg, and two other stores in Cincinnati.

"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," Key said. "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 company’s financial woes do not come as a surprise. David’s Bridal missed an interest payment on $270 million in unsecured notes in mid-October. The missed payment sets into motion a 30-day grace period with debtholders before the retailer is in default.

The retailer has struggled for the past year to reduce its debt while reporting weak operating performances. Analysts have predicted that the retailer could restructure its debt within six months.

It’s not the only bridal retailer to struggle due to industry disruption.

Bridal retailer Alfred Angelo abruptly closed its stores in 2017 without notice, leaving brides and wedding parties scrambling to pick up their dresses. The company had more than 60 stores across the U.S., including one location near the Dayton Mall.

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