David's Bridal Skips Loan Payment, Bankruptcy Possible: Reports

Speculation is swirling that David’s Bridal could be on the brink of bankruptcy after the bridal store chain skipped a loan payment. According to reports, the national bridal store chain missed a key debt payment on $270 million in unsecured funds. The company has a 30-day grace period to make the payment, but failure to do so so could lead to David’s Bridal filing for Chapter 11 bankruptcy.

David's Bridal is a national bridal chain that carries designer gowns, mother of the bride/groom dresses, prom dresses, wedding accessories and tuxedo rentals. The retailer reportedly sells a one-third of the wedding dresses in the United States.

S&P analysts told Retail Dive they believe David’s Bridal is “highly unlikely” to make the debt payment as the company tries to preserve its liquidity. There is a high likelihood that debt restructuring “either out of court or through a court organization” is “likely in the near future.”

A spokesperson for the bridal retailer claimed the missed payment was a “strategic move, adding that the company's "financial outlook is strong,” Retail Dive reported. Talks with lenders are also said to be “continuing in good faith and have been constructive.” The company further stated that it does not expect the talks to impact business or impact relationships with vendors and customers.

While the bridal retailer does not face imminent closure, meeting the obligations of a short-term restructuring could mean closing stores and slashing expenses, industry experts say. The company operates 300 stories in the United States and Canada, including eight stores in the Chicago area:

• Orland Park, 14916 S. LaGrange Road
• Evergreen Park, 9536 S. Western Ave.
• Chicago, 2749 N. Elston Ave.
• Schaumburg, 560 E. Golf Road
• Lombard, 421 E. Roosevelt Road
• Aurora, 4490 E. New York St.
• Vernon Hills, 700 N. Milwaukee Ave.
• Merrillville, IN, 1700 E. 80th St.

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