New Mexico Lawyers Serving New Mexico's Legal Needs Since 1997

David's Bridal files bankruptcy

Much to the chagrin of brides across the country, renowned bridal gown chain David's Bridal recently filed for Chapter 11 bankruptcy protection on November 19, 2018. The company missed a large debt interest payment back in October, and announced the prospective bankruptcy shortly thereafter.

The bankruptcy is not a liquidation, but a debt restructuring, and there are currently no plans to close any of the chain's 300 locations. The company announced that the bankruptcy would allow it to significantly reduce debt and free up capital, getting rid of $400 million in debt and injecting much-needed operating funds back into the business. 

Chief Executive Officer Scott Key announced in a statement that the restructuring support agreement the company entered into will allow them to continue being the nation's leading bridal and special occasion retailer. According to Key, "the restructuring plan is the culmination of extensive discussions with our lenders, noteholders and equity holders, and it provides an expedited path to significantly reduced debt and enhanced financial flexibility."

The debt restructuring has already raised approximately $40 million in new financing from loan lenders. That will allow the company to invest funds in its stores in time for the holiday engagement "bump" that occurs around this time annually. After all, experts report that Christmas Eve and Christmas day are the two most popular days of the year to pop the proverbial question.

The Chapter 11 bankruptcy was filed on November 19, 2018. Now that it is filed, the bankruptcy plan needs approval from the U.S. Bankruptcy Court before it can proceed.  

No Comments

Leave a comment
Comment Information

Watch our videos to learn of the many ways we can help you with your legal needs.

Email Us For A Response

How can We Help You?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations

Firm Location:

Giddens & Gatton Law, P.C.
10400 Academy Road NE
Suite 350
Albuquerque, NM 87111

Phone: 505-273-3720
Fax: 505-271-4848
Map & Directions

Firm Numbers: