Apr 17, 2023 - Economy

David's Bridal files for bankruptcy

Photo: Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images

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.

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