On Monday, November 19, one of the world's most popular wedding retailers filed for bankruptcy. David's Bridal, the bridal dress shop, filed for Chapter 11 bankruptcy.
According to CBS News, the company confirmed that all customers' dresses would be safe. They said that there is absolutely no danger for customers who have already purchased their dresses and that Chapter 11 filing means that business will continue as usual during the restructuring.
According to reports, this particular type of filing is a way to prevent further long-term debt, so that they can hopefully prevent a shutdown. David's Bridal announced that they were attempting to get rid of $400 million in long-term debt. The company has between $500 million and $1 billion in liabilities and between $100 million and $500 million in assets.
David's Bridal revealed that they have commitments for up to $60 million in new financing. They will attempt to exit their Chapter 11 bankruptcy in January.
Even though the company is expected to recover from their bankruptcy filing and customers' dresses are safe, customers still became scared when David's Bridal made the announcement on Monday. For many women around the country, David's Bridal is the go-to shop for all things wedding.
What do you think about the company's decision for refinancing? Do you think it was a smart move? Hopefully, they will be able to get out of their long-term debt. In other recent news, a teenage star athlete was just sent into surgery after crashing at 171 miles-per-hour.