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David's Bridal, Canada's largest wedding retailer, on Monday demanded chapter 11 bankruptcy protection, as it tried to shed more than $ 400 million in debt and money. adapt to the new rivals, but promised the wives that no one would lose his dress.
The company is the latest company to marry in the face of declining marriage rates, intense price pressures on dresses and the abandonment of expensive and expensive accessories in favor of easy online ordering.
Before going to the Delaware bankruptcy court, David's had already negotiated new financing with $ 60 million and a new commitment with a $ 125 million debt.
Thanks to this support, David's, who ignored interest payments on a loan in October, continues to operate more than 300 stores. The company plans to come out of bankruptcy in January.
The company, based in Conshohocken, Pennsylvania, after starting as an individual wedding salon in Florida in 1950, is known for selling affordable wedding dresses, which are priced at less than $ 2,000. It was bought in 2012 by a private equity firm, Clayton, Dubilier & Rice, in a The $ 1.05 billion debt purchase, making it one of the many retailers who had a hard time getting into debt after their acquisition.
David's is a giant in a fast-growing industry that brings in $ 2.5 billion in the US, according to data from research firm IBISWorld.
In addition to six decades of activity, the company has "seen a lot of change: fashion trends, where brides find inspiration and how customers buy," said General Manager Scott Key, in a statement posted well before on the retailer's website week announcing the restructuring.
The average amount spent on wedding dresses has risen from $ 1,211 in 2012 to $ 1,564 in 2016, according to data cited by IBISWorld. However, marriage rates in the United States have steadily declined since 2014 and are expected to continue to fall. According to researchers, Chinese manufacturers have begun to attract many brides with dresses sold online at wholesale prices.
New rivals at David's have emerged, offering low prices, less frills and a respite from a ritual of buying clothes that are often nerve-racking. For example, Kleinfeld Bridal, an upscale New York-based institution featured in TLC's popular "Say Yes to the Dress" show, opened a separate store last year with samples of original dresses that could be tried out without a hint. Appointment. Anthropologie's BHLDN brand is popular, and Asos, the e-commerce fashion giant, began offering wedding dresses in 2016, with many options priced below $ 1,000.
But other vendors of wedding dresses have stumbled. Gap partnered with Weddington Way in April, bringing the bride to close her stores in Banana Republic stores across the country. Last year, Alfred Angelo suddenly closed dozens of stores and then filed for bankruptcy, leaving frantic spouses in embarrassment. J. Crew also ended his business in the area of wedding products in 2016.
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