Just What Brides Didn’t Need; David’s Bridal Files For Bankruptcy
If you've ever tried to plan a wedding, you know this is about the last thing you need to hear. David's Bridal, locally in Southland Mall in Portage, has filed for Chapter 11 bankruptcy protection. CNN says the company owes close to a billion dollars to creditors.
The good news, if you can call it that, is the deal David's Bridal reached with creditors allows it to keep their 300 stores open, not to mention it will shed more than $400 million dollars in debt. Not sure if that's reassuring enough for a bride, but it has to be for an employee facing potential unemployment.
So what happened to David's Bridal? Its not the "same old story of love and glory." CNN says, "While David's Bridal used to be the dominant force in bridal outfitting, it gradually became less relevant...(the company) got battered by changes to the wedding dress industry. The company makes most of its sales from bridal gowns and bridesmaids' dresses, but a shift to more casual weddings made the company's traditional dresses and gowns less appealing."
But more to the point, a bad investment repeated by many investors.
In 2012, a private equity firm bought David's Bridal for more than $1 billion. The high level of debt the company had to take on under the deal left it little room to invest in its digital business or marketing. David's Bridal skipped an interest payment last month. -CNN
One other factor - less people are getting married.