David's Bridal preparing to file for bankruptcy
David's Bridal is preparing to file for bankruptcy, sources familiar with the situation tell Axios.
Why it matters: Should the company file, it would be the second trip through bankruptcy court for the Conshohocken, Pa.-based bridal retailer in just over four years, despite the post-pandemic wedding boom.
- David's Bridal did not comment beyond telling Axios it is conducting a strategic review and pursuing a sale.
Driving the news: The Philadelphia Inquirer reported today that the company is laying off more than 9,000 employees.
- The first round of layoffs occurred today, with more to come in May and June.
Catch up fast: Last week, The New York Times reported David's Bridal was weighing bankruptcy, advised by investment bank Houlihan Lokey, law firm Kirkland & Ellis and restructuring specialist Berkeley Research Group.
What they're saying: "We are evaluating our strategic options and a sale process is underway," a David's Bridal spokesperson says in an email.
- "At this time, there are no updates to share and all stores are open to serve our customers," the spokesperson says.
Flashback: CPPIB Credit Investments, a subsidiary of Canada Pension Plan Investment Board, provided the retailer with a $70 million term loan in 2021 that matures in 2024 to fund operations.
Of note: Private equity firm Oaktree Capital Management, which recently sold Boardriders to Authentic Brands Group, is a leading shareholder in David's Bridal.
Houlihan Lokey and Oaktree Capital Management declined to comment. Kirkland & Ellis and Berkeley Research Group did not respond to a request for comment.