David’s Bridal’s UK division has initiated insolvency procedures in tandem with its US parent company. In the middle of April 2023, Moorfields Advisory administrators were hired by the company’s British branches.
In its more than 70 years of operation in the bridal apparel industry, David’s Bridal has provided service to more than 70 million clients worldwide.
By 2022, David’s Bridal’s yearly revenue had increased to $1.3 billion, but this covers the firm’s ongoing financial problems. In 1999, the company raised $104 million in its first public offering (IPO).
With over 300 locations across the United States, Canada, and the United Kingdom, David’s Bridal has become a go-to destination for brides-to-be looking for a wide selection of affordable and stylish wedding gowns.
The company was founded in 1950 by David Reisberg and has since grown into one of the largest bridal retailers in the world. In addition to their physical stores, David’s Bridal also offers online shopping and virtual appointments, making it easy for customers to find their dream wedding dress no matter where they are.
It previously declared bankruptcy in 2018 as a result of mounting debt and dwindling wedding dress sales. In the midst of the pandemic, its revived form had faced additional costs as a result of lockdown, which resulted in fewer people visiting its brick-and-mortar stores and forced the closure of its factories
Moorfields appointed for David’s Bridal UK administration
The US division of David’s Bridal recently voluntary petitioned for relief under Chapter 11 of the US Bankruptcy Code in response to these challenges. The choice was made after considering a variety of strategic alternatives, including a procedure for marketing and selling the company’s assets, to maximise value for all stakeholders.
At the same time, David’s Bridal UK, which has four locations and more than 150 team members in London, Watford, Birmingham, and Glasgow, started comparable procedures on the other side of the world. Due to its limited liquidity, the company was unable to complete its marketing and sale procedure outside of court and plans to keep looking into selling all or a portion of its assets.
As of 17th April 2023, the UK subsidiary has gone into administration, Andrew Pear and Milan Vuceljic, both of Moorfields Advisory Ltd, 82 St John Street, London, EC1M 4JN are appointed as joint administrators of the company. In order to fulfil orders, the David’s Bridal UK operations will continue to operate as usual under the combined administration of Moorfields Advisory Partners Andy Pear and Milan Vuceljic. At the same time, a stock liquidation will be carried out through the retail locations.
As a result of the Covid-19 outbreak and the deteriorating economic climate, David’s Bridal, like many other stores, has experienced difficulties, according to Andy Pear, Partner at Moorfields Advisory. clients should get in touch with their store if they have any questions as we are collaborating with our American counterparties to help deliver all current purchases to clients.
The bridal sector has suffered for many years due to lockdowns and the restrictions on gathering, Andy Pears advice is if your bridal store is suffering financial distress seek advice at the earliest opportunity.
Moorfields Advisory was established in 2010 and currently employs about 40 consultants and staff members in the UK. The company frequently handles restructuring work for clients all around the nation.
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With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.