Bloomberg.com reports that Conshohocken-based David’s Bridal is moving towards completing an agreement that would allow it to keep operating while going through the Chapter 11 bankruptcy process. From Bloomberg.com:
David’s Bridal Inc. is nearing an agreement with lenders to cut debt through a bankruptcy filing and keep its chain of wedding-gown stores in business, according to people with knowledge of the matter.
The talks involve a restructuring deal that would hand ownership in the reorganized company to senior lenders that include Oaktree Capital Group LLC, said the people, who asked not to be identified because the discussions are private. It’s currently owned by the Clayton Dubilier & Rice buyout firm and carries about $760 million in debt. As part of the agreement, David’s is preparing to file for court protection from creditors as early as next week, they said.
David’s, which has been considering bankruptcy for weeks, doesn’t expect major store closures or liquidations. The Chapter 11 filing would allow the business to keep operating with funding from existing lenders, and thus avoid the calamitous and sometimes tearful impact on brides that often accompanies the collapse of wedding retailers.
Read the full article here.