David’s Bridal Inc. has reached a deal with its lenders that takes a big chunk out of its debt.
The bridal and special occasion dress retailer announced that it has received commitments for $55 million of new capital from existing lenders to fund growth investments. In addition, its lenders have agreed to exchange $276 million of David’s debt loans for company stock, which leaves it with a significantly reduced debt outstanding of about $75 million.
David’s Bridal filed for Chapter 11 bankruptcy protection in November 2018, challenged with a heavy debt load, increased competition from lower-priced competitors and changing bridal fashions. It emerged https://chainstoreage.com/finance-0/davids-bridal-looks-to-expand-offerings-after-bankruptcy in January, after holding true to its promise that its stores and customers would not be disrupted during the process. It did not close any locations during the restructuring.
With the new capital, the retailer plans to roll out improved marketing and align its e-commerce pricing with the stores, reported Bloomberg. It’s also investing in digital marketing.
“With the tremendous support of our investors and lenders, we are executing a compelling transformation strategy that is centered around our customer,” said Jim Marcum, CEO, David’s Bridal, which operates more than 300 stores across the U.S., Canada and the U.K., along with franchise locations in Mexico. “These transactions will provide us with the financial resources and flexibility necessary to focus on changing the David’s Bridal experience by modernizing our branding and marketing, investing in tools and platforms to support brides during the entire wedding planning process, and enhancing the customer experience in-stores and online.”