CLOSE Online retailers, offering more options at lower prices, are hurting traditional wedding retailers, including industry giant David's Bridal. USA TODAY

David's Bridal is struggling with debt and digital competition. (Photo: Getty Images)

David's Bridal, the nation's largest wedding retailer, filed for Chapter 11 bankruptcy protection Monday with plans to stay in business.

The company is saddled with hundreds of millions of dollars in debt from a private-equity buyout several years ago and faces a surge of digital competition.

David's Bridal assured customers that its bankruptcy would not disrupt their weddings – in part because it secured support from key lenders to stay alive. It expects to continue operating more than 300 stores and its website.

"Orders will arrive on time and bridal appointments will not be impacted," the retailer said.

Another wedding retailer, Alfred Angelo, left brides and grooms in a lurch in 2017 when it suddenly liquidated.

David's Bridal said it won't suffer a similar fate.

"For more than 60 years, David's has delivered beautiful, high-quality dresses and accessories for our customers' most special occasions, and the actions we are taking will enable us to build on that tradition," David's Bridal CEO Scott Key said in a statement. "Our team is laser-focused on providing brides and their families with the five-star service and experience they deserve and have come to expect from us."

USA TODAY reported in October that David's Bridal was teetering on the edge of bankruptcy after missing a key debt payment.

More: Buying wedding dresses online: More brides are leaving physical stores at the altar

More: David's Bridal flirts with possible bankruptcy after skipping debt payment

The company is grappling with a decline in spending on wedding dresses, as more brides choose alternatives, including cheaper ones online, and couples wait longer to get married.

The average price paid for a wedding dress fell 3.5 percent to $1,509 in 2017, according to TheKnot.

The retailer filed what's known to restructuring experts as a "prepackaged bankruptcy," which typically means the reorganization process is negotiated ahead of time with creditors who stipulate that the debtor will enter Chapter 11.

With support from certain lenders locked in, David's Bridal said it hopes to finish its bankruptcy by early January and emerge with $400 million less debt.

David’s Bridal still sells about 1 in 3 U.S. wedding dresses, according to market research firm IBISWorld. The company also sells prom dresses and other wedding items.

The chain projected 2018 revenue of $721 million and earnings before interest, taxes, depreciation and amortization of $75 million, according to a court filing.

Since David's Bridal's product suppliers will get paid in full, there's little reason for engaged couples to worry, said Angelo Thalassinos, senior legal analyst for restructuring research firm Reorg.

The "vast majority" of the company's stores are profitable when factoring out debt payments, said Mark Fischer, director of credit research for Reorg.

"This is about realigning the debt and the capital structure with the company’s operations and not about aggressive store closings," Fischer said.

The trend of Americans waiting longer to get married, or deciding not to altogether, has hurt David's Bridal. The number of new marriages per 1,000 Americans was 6.9 in 2016, down from 8.2 in 2000, representing a decline of about 16 percent in the wedding rate, according to the U.S. government.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

Read or Share this story: https://www.usatoday.com/story/money/2018/11/19/davids-bridal-bankruptcy/2053083002/</s>David’s Bridal has filed for reorganization under Chapter 11 of the United States Bankruptcy Code in the District of Delaware. The court-supervised process is expected to be completed by early January. The Pennsylvania-based company said in…

David’s Bridal has filed for reorganization under Chapter 11 of the United States Bankruptcy Code in the District of Delaware.

The court-supervised process is expected to be completed by early January.

The Pennsylvania-based company said in a statement that the voluntary bankruptcy filing and a planned financial restructuring will have no impact on its customers’ experiences and that brides will receive their dress orders on time.

“Our team is laser-focused on providing brides and their families with the five-star service and experience they deserve and have come to expect from us,” said Scott Key, CEO of David’s Bridal.

The retailer has four locations in Greater Washington: Springfield, Woodbridge, Bowie and Rockville.

Key called the filing the next step in an effort to proactively secure the company for “a long, successful future.”

“We will be able to move through the court process very quickly, and in the end, we will be able to allocate even more of our resources towards…</s>Wedding gown retailer David’s Bridal filed for chapter 11 bankruptcy protection Monday to implement a restructuring deal reached in recent weeks with lenders.

Last week, the retailer announced it had reached an agreement with term loan lenders and substantially all of its senior bondholders and equity holders on the terms of the deal, which will see it slash more than $400 million in debt from its balance sheet.

The Conshohocken, Pa.-based retailer skipped a loan payment recently and opened talks with lenders about how to resolve a debt load of more than $900 million.

The U.S. Bankruptcy Court in Wilmington, Del., will supervise David’s turnaround effort. The company said it has commitments for $60 million in new bankruptcy financing from its existing lenders as well as a commitment to keep the existing $125 million asset-backed loan in place to keep the company going during bankruptcy.

Judge Laurie Selber Silverstein has been assigned the case, number. 18-12635.</s>David’s Bridal has been buried under a mountain of debt. It hasn’t helped that fewer people are tying the knot lately.

The nation’s largest bridal retailer filed for Chapter 11 bankruptcy protection on Monday. It owes between $500 million and $1 billion to creditors, according to court records.

As part of the bankruptcy, David’s Bridal reached a deal with lenders to reduce the company’s debt by more than $400 million. The agreement will allow David’s Bridal to continue to operate its more than 300 stores.

Unlike Alfred Angelo, which shut down last year without telling soon-to-be brides, David’s Bridal customers won’t be affected by the bankruptcy. Wedding dresses will arrive on time and bridal appointments won’t be impacted, the company said.

“While David’s Bridal used to be the dominant force in bridal outfitting, it gradually became less relevant,” said Neil Saunders, managing director at GlobalData Retail.”David’s Bridal is a classic case of a retailer with too much debt and a challenged business model.”

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.

David’s Bridal also 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, analysts say.

Sales and traffic have both fallen at David’s Bridal, according to Moody’s.

Upstart competitors such Floravere, Anomalie, and Urban Outfitters’ Anthropologie also undercut David’s Bridal.

“Retailers like Anomalie offer a much more modern and exciting service, which allows brides to create bespoke gowns,” Saunders said. “Newer entrants feel fresh and contemporary. By comparison, David’s Bridal appears stuffy and old-fashioned.”

David’s Bridal has also been hurt by the declining marriage rate in the United States. The number of marriages per 1,000 Americans fell from 8.2 in 2000 to 6.9 in 2016, according to the most recent CDC data.

“Cohabitation in lieu of marriage is increasingly culturally accepted,” Moody’s analyst Raya Sokolyanska said in a research report last year. “Couples pay down student debt and other obligations and pursue careers first.”</s>David’s Bridal, the largest wedding retailer in the country, filed for Chapter 11 bankruptcy protection on Monday as it tries to shed more than $400 million in debt and adjust to new rivals, but it promised brides that no one would lose their gowns.

The company is the latest bridal business to flounder in the face of sliding marriage rates, intense price pressures on dresses and a shift away from elaborate and expensive fittings toward easy online ordering.

Before going to bankruptcy court in Delaware, David’s had already negotiated a deal with creditors for $60 million in new financing and a recommitment for a $125 million revolving credit facility.

The support will help David’s, which skipped a loan interest payment in October, continue to operate its more than 300 stores. The company plans to exit bankruptcy in January.</s>(CNN) -- David's Bridal, the nation's largest bridal retailer, is filing for bankruptcy.

The company's Chapter 11 filing on Monday came as it struggles under a mountain of debt. According to court records, David's Bridal owes between $500 million and $1 billion to creditors--that amount is being reduced by more than $400 million under the bankruptcy agreement.

The agreement also allows operations to continue at the company's 300-plus stores.

The company says all wedding dresses will arrive on time and no bridal appointments will be impacted.

According to Moody's, sales and traffic have declined at David's in recent years. Marriage rates in the U.S. are also on the decline.</s>David's Bridal, the nation's largest wedding retailer, filed for Chapter 11 bankruptcy protection Monday with plans to stay in business.

The company is saddled with hundreds of millions of dollars in debt from a private-equity buyout several years ago and faces a surge of digital competition.

David's Bridal assured customers that its bankruptcy would not disrupt their weddings — in part because it secured support from key lenders to stay alive. It expects to continue operating more than 300 stores and its website.

"Orders will arrive on time and bridal appointments will not be impacted," the retailer said.

Another wedding retailer, Alfred Angelo, left brides and grooms in a lurch in 2017 when it suddenly liquidated.

"For more than 60 years, David's has delivered beautiful, high-quality dresses and accessories for our customers' most special occasions, and the actions we are taking will enable us to build on that tradition," David's Bridal CEO Scott Key said in a statement. "Our team is laser-focused on providing brides and their families with the five-star service and experience they deserve and have come to expect from us."

USA TODAY reported in October that David's Bridal was teetering on the edge of bankruptcy after missing a key debt payment.

The company is grappling with a decline in spending on wedding dresses, as more brides choose alternatives, including cheaper ones online, and couples wait longer to get married.

The average price paid for a wedding dress fell 3.5 percent to $1,509 in 2017, according to TheKnot.

The retailer filed what's known to restructuring experts as a "prepackaged bankruptcy," which typically means the reorganization process is negotiated ahead of time with creditors who stipulate that the debtor will enter Chapter 11.

With support from certain lenders locked in, David's Bridal said it hopes to finish its bankruptcy by early January and emerge with $400 million less debt.

David’s Bridal still sells about one in three U.S. wedding dresses with estimated annual retail revenue of $791 million, according to market research firm IBISWorld.

The company also sells other prom dressed and other wedding items.

The trend of Americans waiting longer to get married, or deciding not to altogether, has hurt David's Bridal. The number of new marriages per 1,000 Americans was 6.9 in 2016, down from 8.2 in 2000, representing a decline of about 16 percent in the wedding rate, according to the U.S. government.</s>Pennsylvania-based David’s Bridal this morning filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. The court-supervised process is expected to be completed by early January.

David’s Bridal, which specializes in wedding dresses, prom gowns, and other formal wear, has stores in Yonkers and Middletown, in New York and in Danbury, Connecticut.

The company said in a statement that its previously announced restructuring supporting agreement would reduce the company’s approximate $760 million in debt by $400 million.

In a message posted to its customers on its website, David’s Bridal CEO Scott Key said, “Our 300-plus stores will continue operating, and all orders and alterations will be delivered as promised. We are, and will continue to be, open for business.”

As part of the court process, the company said it “has obtained commitments for $60 million in new debtor-in-possession financing from its current term loan lenders and a recommitment of its existing $125 million asset-based lending revolving credit facility to support the company’s continued operations during the restructuring.”

The company is based in Conshohocken and has been in business for 60 years.</s>David's Bridal, the nation's largest wedding retailer, filed for Chapter 11 bankruptcy protection Monday with plans to stay in business.

The company is saddled with hundreds of millions of dollars in debt from a private-equity buyout several years ago and faces a surge of digital competition.

David's Bridal assured customers that its bankruptcy would not disrupt their weddings — in part because it secured support from key lenders for it to stay in business. It expects to continue operating more than 300 stores and its website.

"Orders will arrive on time and bridal appointments will not be impacted," the retailer said.

Another wedding retailer, Alfred Angelo, left brides and grooms in a lurch in 2017 when it suddenly liquidated.

"For more than 60 years, David's has delivered beautiful, high-quality dresses and accessories for our customers' most special occasions, and the actions we are taking will enable us to build on that tradition," David's Bridal CEO Scott Key said in a statement. "Our team is laser-focused on providing brides and their families with the five-star service and experience they deserve and have come to expect from us."

USA TODAY reported in October that David's Bridal was teetering on the edge of bankruptcy after missing a key debt payment.

More: Buying wedding dresses online: More brides are leaving physical stores at the altar

More: David's Bridal flirts with possible bankruptcy after skipping debt payment

The company is grappling with a decline in spending on wedding dresses, as more brides choose alternatives and couples wait longer to get married.</s>David's Bridal files for bankruptcy, but your order is safe

David's Bridal is filing for bankruptcy protection but there is no danger for customers who have ordered dresses because operations continuing as normal while the wedding and prom retailer restructures.

The bankruptcy filing, the private company said Monday, will wipe out more than $400 million in long-term debt.

It has commitments for $60 million in new debtor-in-possession financing and expects to exit Chapter 11 in early January.

The 300-plus stores run by the Conshokocken, Pennsylvania, company will continue to operate and online sales will continue unimpeded.
David's Bridal files for Chapter 11 bankruptcy.