David’s Bridal, the nation’s largest wedding retailer, could be the next victim of the retail apocalypse.
Bankruptcy questions are swirling around the company amid falling sales and after it skipped a key debt payment on Monday. (Missing debt payments is often a precursor to a company filing for Chapter 11 bankruptcy protection.)
S&P Global Ratings analyst Mathew Christy told USA Today there is a “very high likelihood” that David’s Bridal will file for bankruptcy, but did not discuss a possible timeline for that.
David’s has a 30-day grace period to make the payment, though Christy suggested it was unlikely the company would do so.
David’s sells roughly one-third of the wedding dresses in the United States. It has more than 300 stores nationwide. Should it file for bankruptcy, it’s possible some of those locations could be shuttered.
The company, in a statement to USA Today, downplayed the missed payment.
“Our financial outlook is strong and we have ample liquidity to meet our key business objectives today and in the future,” it said. “With the assistance of our financial and legal advisors, we are engaged in discussions with our lenders in order to reach a mutually agreed upon resolution designed to strengthen our balance sheet so we can increase our financial flexibility and further invest in our business.”
The troubles at David’s Bridal come days after Sears filed bankruptcy after 125 years in business. And just last year, 10 of the 62 Alfred Angelo bridal stores around the U.S. closed without warning, causing a panic among many brides to be.
