David’s Bridal reportedly facing bankruptcy
U.S. retailer David’s Bridal is struggling to manage its costs after emerging from bankruptcy five years ago, and it is working with advisers as it explores its options, sources told the New York Times on Saturday.
According to two people familiar with the matter, one possibility is for the Pennsylvania-based retailer to file for bankruptcy again within the next few weeks, though nothing definite has been decided, said the Times report.
The company has been working with the investment bank Houlihan Lokey to explore a sale, which could be included as part of a bankruptcy filing, according to one of the people.
The retailer has also reportedly hired the law firm Kirkland & Ellis, and also said to have hired the investment firm BRG (Berkeley Research Group), the report added.
In 2018, David’s Bridal reached a deal with lenders to reduce its debt by more than $400 million. In 2021, the bridal company closed a $70 million loan provided by CPPIB Credit Investments, a subsidiary of the Canada Pension Plan.
The bridal wear market in the U.S. was estimated at $27 billion in the year 2022, according to a Research and Markets report. The country currently accounts for a 44.16% share in the global market, it added.
