We now have confirmation that a David’s Bridal bankruptcy will indeed be taking place.
Confirmation of the David’s Bridal bankruptcy comes directly from the company itself. While the company has yet to actually file for Chapter 11 bankruptcy protection, it does say that it intends to do so sometime in the near future.
Customers with concerns about how the David’s Bridal bankruptcy will affect the company’s service need not worry. The wedding dress chain says that it will continue to operate as normal throughout the bankruptcy.
The David’s Bridal bankruptcy will have the company reducing its debt after reaching a deal with investors. This will have the company dropping $400 million worth of its debt. It has also secured $40 million that will help it continue operations while going through the bankruptcy process, reports CNBC
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This isn’t the first time that we’ve heard about a David’s Bridal bankruptcy. Many were expecting just such an outcome after the company missed a key debt payment last month. However, there was still hope via a 30-day grace period, but the recent announcement confirms expectations.
There are a couple of different reasons that the David’s Bridal bankruptcy is taking place. First off, the company is seeing more competition from online retailers and doesn’t have the same online presence as them. The next major factor has to do with marriage rates in the U.S. These are down as more people are getting married later in life.
As of this writing, William White did not hold a position in any of the aforementioned securities.
