If you’ve never been remotely involved with a wedding in any capacity in New York or elsewhere, there’s a chance that David’s Bridal won’t assume much – if any – significance for you.
If, conversely, your connection to that special day rings close and dear (let’s just say that you are a bride-to-be, for example), that company might well be exceptionally meaningful to you. David’s is an iconic company, being the country’s largest wedding retailer. Reportedly, more than 30% of all women with scheduled wedding dates buy their dresses from David’s. The company has an estimated sales revenue of about $800 million annually.
And yet it has been in dire straits financially in recent years, facing a number of factors that have collectively muted its sales and challenged its niche supremacy.
One obstacle to its continued profitability has been the propensity of many Millennials to marry at a later age than did their parents. Another is ever-growing online competition.
David’s has acutely felt those pressures, with its bottom line being progressively pinched to the point that it recently filed for Chapter 11 bankruptcy.
Unlike many entities who employ Chapter 11 to liquidate operations, David’s cites a plan geared toward streamlined operations and continued viability. Company principals say they worked out a process with creditors that will enable David’s to emerge from Chapter 11 with far less debt and a continued ability to operate hundreds of stores nationally.
David’s assures its many customers that it will continue to fully perform. “Bridal appointments will not be impacted,” it stated in the wake of its bankruptcy filing earlier this week.
Chapter 11 is certainly a viable and even optimal option for many business entities facing stark financial challenges. We note on our website at the proven financial restructuring law firm of Rich Michaelson Magaliff that other debt-relief vehicles exist as well, some which employ “multi-dimensional” strategies that can help a beleaguered business get back on its feet.
We welcome contacts to the firm and the opportunity to provide further information.