If you or someone you know is a bride-to-be that purchased a dress from David's Bridal, you are probably shocked to learn that the retailer has recently filed for Chapter 11 bankruptcy.
The company, which has been North America's largest wedding dress retailer, has been dealing with a large amount of debt that has finally gotten out of hand.
According to CNN, court documents show that David's Bridal owes between $500 million and $1 billion to creditors.
This news has left many people wondering what will happen to the dresses they have already paid for.
Unlike retailers like Alfred Angelo, which shuttered its stores last year without warning its brides, David's Bridal is making sure soon-to-be brides who have shopped at their stores will not be affected by the changes.
Instead of closing down, the retailer has been locked into a restructuring support agreement (RSA) that should help them reduce their debt by more than $400 million.
Despite the current situation and the overall decline in weddings, the brand is hopeful that they will be able to once again be in a financial position that will allow it to stick around long-term.
In a statement to Today Style, Scott Key, chief executive officer of David’s Bridal confirmed that all customers will receive their orders on time.
"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. 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."
The company is expected to go through the reorganization process between now and early January. It has managed to secure $60 million in financing from its current lenders, and are making sure that their employees won't also be affected by the restructuring.
"Today’s announcement is just the next step in our efforts to proactively secure David’s Bridal for a long, successful future. We are implementing our consensual restructuring plan from a position of strength and, with the support of our lenders, noteholders and equity holders, the plan will allow us to reduce our debt significantly while continuing to run our business as usual. 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 making strategic investments in digital technologies and talent that will drive long-term growth and operational excellence at David’s Bridal.
Although there's some instability right now, business will be as usual for customers, so you can still make appointments as well as shop at David's Bridal stores and online.
So bride-to-be's can breathe a sigh of relief and rest assured that David's Bridal's decision will not impact their wedding day.