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High stakes
It's also more demanding, in order to win and satisfy customers who, in most cases, will not be repeat customers. "The stakes are high and things have to be perfect," said Sokolyanska. "It's hard to please this wife, emotions are strong and they can spread on social networks."
David's started life 68 years ago as Phillie Bridals in a salon in Fort Lauderdale, Florida. The late twentieth century was filled with suitors: in May, department stores bought it before merging with a competitor who sold it to private equity firms Leonard Green Partners and TPG Capital at the beginning in 2007. Five years later, Clayton, Dubilier & Rice took control of a $ 1.05 billion buyback.
David's is the latest in a series of merchants overtaken by the public debt. It has been actively negotiating with its creditors for weeks and, through bankruptcy, will return the equity of the reorganized company to senior lenders, including Oaktree Capital Group LLC.
Expressway
A quick reorganization is essential, said Jeffrey Schwartz, McKool Smith's bankruptcy attorney, because the costs accumulate and "things do not usually improve with too much time." If the company checks its mail properly, "it should work as usual".
The restructuring will give David more money for it to invest in growth, and she plans to go out with all her stores intact and generous funding. Still, Sokolyanska at Moody's is not considering a second honeymoon for his growth prospects.
"I see this more as a story of maintaining what they have as opposed to an opportunity for growth," she said. "I do not think they're coming back to the profitability they've once had."
Lauren Coleman-Lochner and Katherine Doherty, Bloomberg
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