David’s Bridal has secured court approval to pay up to $8.9 million to its creditors after filing for Chapter 11 on April 16, according to documents filed in bankruptcy court. This is just a portion of the $27.5 million the retailer owes its trade creditors, according to another document. The retailer reportedly is still facing the possibility of shuttering all stores if it can’t find a buyer, according to The Wall Street Journal.
At the time of its bankruptcy filing, David’s Bridal had $4.4 million cash on hand and loans totaling up to $85 million from existing lenders to help keep it afloat as it goes through the sales process. The retailer also has hired liquidation firm Gordon Brothers Retail Partners to assist it with winding down its stores should that become the only viable path forward.
David’s Bridal has been struggling with changing consumer habits — weddings fell to their lowest level in 121 years in 2020, which is unsurprising, and they have yet to return to previous levels. Only 1.9 million weddings were held in the U.S. in 2022, compared to an average of 2.2 million annually in the years leading up to the pandemic, according to data cited in the bankruptcy filing. Additionally, many of the weddings that have been held have eschewed the traditional wedding attire in favor of alternatives.
While David’s Bridal has been rolling out modern offerings, including House of Prom pop-ups and the Pearl by David’s wedding planning platform, these pushes were not enough to save it from its second bankruptcy since 2019. Last time, the retailer managed to exit the process without closing any stores, but it is already planning to lay off 9,000 workers as part of the current proceeding. Additionally, David’s Bridal is facing intense competition in the form of new wedding-focused initiatives from rivals, such as the groom-focused Wedding Wingman digital planning suite from Men’s Wearhouse.
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