As part of a deal with its lenders to lower its debt by $400 million, David’s Bridal filed for Chapter 11 bankruptcy on Monday (Nov. 19). The company expects that the process, which is supervised by the court, will be finished by the beginning of January, CNBC reported.
On Monday, the chain said it has new debtor-in-possession commitments of $60 million in financing, as well as $125 million in recommitment of an asset-backed loan. According to a statement reported by the news outlet, the retailer plans to stay open during the bankruptcy process. The company said that appointments and orders would not be affected.
“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,” said David’s Bridal CEO Scott Key. “We are implementing our consensual restructuring plan from a position of strength and, with the support of our lenders, noteholders and equity holders, the plan will allow us to reduce our debt significantly while continuing to run our business as usual.”
Last week, news surfaced that the company was said to be planning a bankruptcy filing, reportedly as part of an agreement with lenders. The company, which is faced with shifting consumer preferences and a hefty debt load, isn’t the only bridal retailer that has seen challenges: Alfred Angelo experienced liquidation about a year ago.
Key said in a statement at the time, according to CNBC, “David’s Bridal will continue to lead our category with an unbeatable selection of beautiful, high-quality wedding and special occasion dresses in a wide range of styles, colors, sizes and prices. For 60 years, David’s has delivered for our customers on time, and the agreement announced today allows us to maintain that tradition for many years to come.”