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David's Bridal Near Me:

David's Bridal Near Me:

After 124 years in business, the high-end home goods retailer filed for Chapter 11 protection with around $80M in unsecured debt and $8M in secured debt. Notably, the company initially survived the onset of the pandemic — however, like others in its space, it ultimately succumbed to decreased foot traffic and supply chain disruption. While the pandemic gave rise to new complications, it also exacerbated existing issues for the company, such as flagship store construction delays and the company’s struggle to establish a digital presence on par with its in-store experience. At the time of filing in 2021, sales were down 50% from 2018, reaching just $25M. The company announced that it would maintain regular operations and seek out a buyer via auction by the end of October. (Source: www.cbinsights.com)

Summary: Struggling to keep up with online competitors and burdened with hundreds of millions of dollars in debt from a prior private-equity buyout, David’s Bridal filed for bankruptcy on November 19, 2018. The bridal apparel retailer secured financing to keep its website and more than 300 stores operating normally as it reorganized, promising that brides would still receive their wedding dresses on schedule. David’s Bridal emerged from bankruptcy in January 2019, yet still faces considerable challenges as the marriage rate continues to decline and millennials in particular delay their trips to the altar. (Source: www.cbinsights.com)

Mall owner Washington Prime Group filed for Chapter 11 bankruptcy protection after temporarily closing around 100 shopping centers. Businesses had been unable to pay rent under the weight of pandemic pressures, resulting in the company’s rental income dropping $127M in 2020. The downturn didn’t stop there: from March 2020 to March 2021, income fell from $10M to $3.3M. In initiating bankruptcy proceedings, WPG entered into a restructuring agreement with its creditors. The company stated that it had secured $100M in debtor-in-possession financing in order to maintain business operations as it looked to deleverage its balance sheet by $950M. (Source: www.cbinsights.com)

 

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