Chapter 11 Forces David’s Bridal to Close All Stores Unless Buyer Is Found — Retail Bum

Wedding dress retailer David’s Bridal has revealed that it has voluntarily filed petitions for Chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the District of New Jersey.

The company also plans to initiate a recognition proceeding in Canada, and one of its subsidiaries in the United Kingdom will begin an administrative proceeding for its business.

At the time of the Chapter 11 filing, David’s Bridal reported a cash reserve of just $4.4 million. To ensure a seamless sales process, the company has secured loans from its current lenders on revolving credit lines, including Bank of America NA, totaling $85 million.

David’s Bridal’s move to file for bankruptcy reflects the lingering effects of the Covid-19 pandemic and changes in consumer trends. The wedding rate in the country has dropped to its lowest level in 121 years and remains below average. Marcum’s research and various sources indicate that in 2022, there were 1.9 million weddings compared to the pre-pandemic annual average of 2.2 million.

The court filing also revealed that the increasing demand for nontraditional wedding attire has adversely affected the gown business, resulting in a decrease in-store traffic. According to court documents, in-store…