David’s Bridal, which specializes in bridal and special occasion apparel and accessories, said it has completed its financial restructuring and has exited bankruptcy court protection.
The retailer filed a voluntary Chapter 11 petition for bankruptcy court protection in November in Delaware, and said back then it anticipated an exit from bankruptcy early- to mid-January. The filing was what is referred to as a pre-pack, meaning the company was able to negotiate an agreement on the financial restructuring with most of its key lenders and creditor groups prior to the filing of its petition. With an agreement in place, that helped pave the way for a relatively easy tour of bankruptcy proceedings. At the time of the filing, the company said it was four-wall profitable on an EBITDA, or earnings before interest, taxes, depreciation and amortization, basis, but had a high debt load due to a leveraged buyout.
Scott Key, chief executive officer, said, “Throughout this process, we fully delivered on our promise to our customers: dresses arrived on time [and] stores remained open…We look forward to building on the success our brand has established over the past 60 years.”
While the retailer has faced competition from smaller companies targeting the direct-to-consumer approach, David’s Bridal said it has been working on giving its consumer base what they want. For 2019, the company said it will re-introduce favorite styles at a new lower price and expand its size range. The retailer has also expanded its online assortment for bridesmaids and special occasion dresses.
The company operates about 311 stores.