David's Bridal files for bankruptcy
David's Bridal announced early Monday morning it has filed for Chapter 11 protection in U.S. Bankruptcy Court in New Jersey, under which it will continue a sale process for the company.
Why it matters: Distressed situations and bankruptcies broadly are increasing after a relatively quiet 2021 and 2022.
Catch up fast: It's the second trip through bankruptcy court in less than five years for the Conshohocken, Pa.-based bridal company, colloquially known as a Chapter 22.
- After the company revealed plans on Friday to lay off more than 9,000 employees in the coming months, Axios reported the company was preparing to file for bankruptcy.
- The New York Times previously reported David's Bridal was weighing bankruptcy, advised by investment bank Houlihan Lokey, law firm Kirkland & Ellis and restructuring specialist Berkeley Research Group.
Flashback: CPPIB Credit Investments, a subsidiary of Canada Pension Plan Investment Board, provided the retailer in 2021 with a $70 million term loan to fund operations. That loan matures in 2024.
Of note: Private equity firm Oaktree Capital Management, which recently sold Boardriders to Authentic Brands Group, is a leading shareholder in David's Bridal.