David’s Bridal, a prominent bridal retailer in the United States, is reportedly encountering financial difficulties just five years after emerging from bankruptcy. Insider sources have disclosed that the company is grappling with cost management issues and is seeking advice from advisers to consider its next steps.

One potential option under consideration is for David’s Bridal to file for bankruptcy again in the near future, but it is important to note that no final decisions have been made. To assist with a potential sale, which could be included as part of a bankruptcy filing, the retailer has enlisted the help of investment bank Houlihan Lokey.

In addition to Houlihan Lokey, David’s Bridal has reportedly hired the services of law firm Kirkland & Ellis and investment firm Berkeley Research Group (BRG). These strategic moves indicate that the company is actively searching for solutions to its financial challenges.

To alleviate its debt burden, David’s Bridal previously reached an agreement with lenders in 2018 to reduce its debt by over $400 million. In 2021, the company secured a $70 million loan from CPPIB Credit Investments, a subsidiary of the Canada Pension Plan, further illustrating its efforts to navigate its financial difficulties.

The bridal wear market in the United States is highly profitable, with a projected value of $27 billion in 2022, according to a report by Research and Markets. The country currently holds a substantial 44.16% share in the global market. Despite this, David’s Bridal’s ongoing struggles highlight the challenges faced by even well-established retailers in the industry.

It remains to be seen what actions David’s Bridal will ultimately take to address its financial woes. However, with the involvement of reputable financial and legal advisors, it is evident that the company is actively exploring all available options. The outcome of these efforts will have significant implications not only for David’s Bridal but also for the wider bridal retail industry.

Here are two relevant links to the article:

Reuters: David’s Bridal considers bankruptcy as debts mount
Forbes: Did David’s Bridal Elope Through The Front Door?