Wedding dress retailer David’s Bridal Inc filed for Chapter 11 bankruptcy protection on Monday, but said brides would receive their gowns on time during its restructuring.
The 68-year old company is the latest retailer to succumb to competition against online stores, which give customers more options and are often more transparent about prices.
David’s Bridal stores have in recent years turned into mere showrooms where customers try on gowns and test designs, only to buy them online for cheaper.
More than 20 retailers have filed bankruptcy since the beginning of 2017, including Toys ‘R’ Us and more recently, Sears Holdings, once the world’s largest retailer.
David’s Bridal said Chapter 11 restructuring would help it reduce its debt by more than $400 million.
The company has secured $60 million in debtor-in-possession (DIP) financing from its current term loan lenders and a recommitment for a $125 million asset-based loan to keep its stores open during restructuring and pay vendors.