Dealing with a mountain of debt and less business coming in the door, David’s Bridal is the latest in a string of retailers to file for Chapter 11 bankruptcy protection.
The company is assuring customers that orders will continue to flow and doors will remain open through the proceedings, according to Women’s Wear Daily and other reports.
“We are, and will continue to be open for business, and we hope to see you soon,” David’s Bridal CEO Scott Key said in a video message to reassure jittery customers on the retailer’s website.
David’s Bridal owes between $500 million and $1 billion to creditors, according to court records, WWD reported. The company has reached agreements with lenders to reduce its debt from $777 million to $343 million. It expects to exit Chapter 11 by mid-January.
David’s Bridal will be able to keep its 300-plus stores open through the process. Fortunately it won’t follow the example of competitor Alfred Angelo, which left thousands of bridal customers in the lurch when it shut down its stores in 2017 in the wake of a Chapter 7 bankruptcy filing.
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