David’s Bridal Is Said to Be Considering Bankruptcy, Again
Corporate bankruptcies in March reached their highest monthly number since July 2020, before the Federal Reserve injected the U.S. economy with billions in capital that has kept many companies afloat.
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David’s Bridal is the latest beleaguered retailer to feel strain as credit conditions have tightened. Bed Bath Beyond sold stock in February in a move to stave off filing for bankruptcy. In January, Party City filed for bankruptcy. The next month, the discount home goods retailer Tuesday Morning did the same.
Retailers that file for bankruptcy do so to shed debt and streamline their costs. A second filing would give David’s Bridal a chance to make structural changes it did not the first time around, such as closing stores. The retailer, which has roughly 300 locations, mostly in the United States, did not close a significant number of stores during its quick trip through bankruptcy court last time. It emerged from that bankruptcy after two months.
Bridal retailers, in particular, are sensitive to making sure they keep providing goods and services to brides-to-be and wedding planners, who are working against the intense deadline of a wedding day.
In 2022, nearly 2.5 million weddings were held — the most in four decades — after the pandemic caused a backlog. But the pause in celebrations changed the way in which people dressed for weddings and where they purchased their clothes.
Article source: https://www.nytimes.com/2023/04/07/business/dealbook/davids-bridal-bankruptcy.html