David’s Bridal files for bankruptcy — again; looking for buyer
David’s Bridal has filed for bankruptcy for the second time in five years.
The country’s largest wedding dress retailer, on Monday, said it filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in New Jersey, under which it will continue to explore a sale of all or some of its assets. The filing came days after the company revealed plans to lay off more than 9,000 employees in the next coming months.
David’s Bridal previously filed for bankruptcy in November 2018 amid a heavy debt load, increased competition from lower-priced competitors and changing bridal fashions. It emerged some two months later, with about $450 million less in debt, after keeping to its promise that its stores and customer orders would not be disrupted during the process.
With its latest filing, David’s Bridal once again said that its stores remain open and it intends to fulfill all customer orders “without disruption or delay.” It also will honor gift cards, returns and exchanges.
“Additionally, the company's online platforms, including its Pearl platform and vendor marketplace, remain available and accessible to brides for their wedding planning needs,” the retailer stated.
In the release announcing its filing, David’s Bridal also said it is evaluating its physical footprint to “maximize value and the prospect of a successful going concern transaction.” The retailer, which has more than 300 stores across the U.S., Canada, U.K., and franchise locations in Mexico, did not close a significant number of stores during its prior restructuring.
During the last couple of years, David’s Bridal has updated its offerings and marketing and put a new focus on its omnichannel capabilities. In September 2022, the retailer entered into a partnership with Little Tuxedos, an online destination that offers suits and formalwear for boys in sizes 6 months to 20H. The deal with Little Tuxedos, which will have a dedicated presence in select David's stores, builds off its existing partnership with The Black Tux, which supplies men's suits and formalwear for rent and purchase.
In December, the company announced plans to open prom pop-up shops in the first quarter of 2023, ahead of prom season. It also unveiled Diamond Prom, a free loyalty program for high-school students that is an extension of David’s Diamond Loyalty program.
[Read More: David’s Bridal launches shoppable TikTok campaign]
“We have successfully modernized our marketing and customer interaction processes and driven our retail service levels to best in class,” said CEO David Marcum. “Nonetheless, our business continues to be challenged by the post-COVID environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward. We are determined to stay focused on our future, because we believe we have an important role in ensuring that every bride, no matter her budget, can have her perfect dress."
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Houlihan Lokey Capital, Inc. is serving as investment banker, BRG is serving as financial and restructuring advisor, Osler, Hoskin & Harcourt LLP is serving as Canadian legal counsel, C Street Advisory Group is serving as strategic communications advisor, and Omni Agent Solutions is serving as claims and noticing agent to the Company. David's Bridal has retained Gordon Brothers to assist with inventory sales.