CONSHOHOCKEN, Pa. -- Attention brides to be: David's Bridal, the nation's leading bridal and special occasion authority, may soon file for Chapter 11 bankruptcy as part of a financial restructuring plan.
On Thursday, Nov. 15, it was announced that David's Bridal "reached an agreement-in-principle with the vast majority of its term loan lenders and substantially all of its senior noteholders and equity holders on the terms of a restructuring support agreement that will reduce the company's debt by more than $400 million and provide significant financial flexibility to support the company's long-term growth prospects."
Scott Key, CEO of David's Bridal, said in a statement customers can continue to shop across more than 300 stores and online without disruption -- noting that orders will arrive on time, and bridal appointments won't be impacted.
"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.
The restructuring plan is the culmination of extensive discussions with our lenders, noteholders and equity holders, and it provides an expedited path to significantly reduced debt and enhanced financial flexibility. We want to thank each of our stakeholders for their confidence in David's Bridal and for their efforts as we move forward as an even stronger company. As part of the agreement, our lenders have committed substantial new capital to fund the Company's operations and support the business throughout the restructuring process," said Key in the statement.
Operations will continue as usual throughout the Chapter 11 bankruptcy court-supervised process. Officials said as part of the agreement-in-principle, David's Bridal's term loan lenders have committed more than $40 million in new financing, which, in addition to existing cash on hand, will support the company's continued operations.