David’s Bridal has filed for Chapter 11 in Wilmington as the company works to reduce its debt load.
A tuxedo-clad CEO Scott Key spoke in a video in making the announcement. Key said the company had reached an agreement on restructuring.
https://www.youtube.com/watch?v=Z1wZtgvDupA
According to Bloomberg, the company listed assets of more than $100 million and liabilities of $500 million.
David’s is believed to be working on a prepackaged bankruptcy, a process is aimed at dealing with other creditors that might or might not go along with the agreement.
The company says it will not close its 300-plus stories around the nation as part of the restructuring effort.
The company vowed that all orders and alterations will be delivered.
The wedding store business has seen closings of both large and small retailers, with Bloomberg noting that the number of marriages and weddings is down.
Key’s video was designed to reassure brides who have been left without dresses on the big day. The closing of competitor Alfred Angelo left many brides without dresses for the special day.
David’s Bridal has a store in the Christiana Fashion Center south of Newark.
