David's Bridal files for bankruptcy after falling victim to debt and competition

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Wedding gown emporium David's Bridal has filed for chapter 11 bankruptcy protection. The company was acquired by private-equity firm Clayton Dubilier & Rice LLC in 2012 for $1.05 billion, and has since come under debt pressure. Last week, the company announced a restructuring deal with lenders that will cut $400 million in debt. The company's Chief Executive Scott Key posted a short clip and message on the company's website last week announcing the restructuring and assuring customers that all 300-plus stores will remain open for business, with orders and alterations continuing "as promised." GlobalData Retail says competition in addition to crushing debt contributed to David's Bridal's problems. "Retailers like Anomalie offer a much more modern and exciting service, which allows brides to create bespoke gowns; while online players such as Floravere provide a relatively cost-effective way of buying designer dresses," GlobalData Managing Director Neil Saunders wrote in a note published Thursday. "Meanwhile, some generalist players, like Anthropologie which has launched its own bridal brand BHLDN, have become more focused on the wedding market as a way of driving incremental sales growth." Anthropologie is an Urban Outfitters Inc. brand. By contrast, GlobalData says David's Bridal looks "stuffy and old-fashioned."

Source: News Formal (newsformal.com)

 

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