Major wedding dress retailer collapses into administration
Wedding dress retailer David’s Bridal has collapsed into administration hours after its American owner filed for bankruptcy.
David’s Bridal store in Birmingham (Credit: David’s Bridal / Facebook)
The UK business has four stores, in Birmingham, Glasgow, London and Watford, and employs more than 150 people. The David’s Bridal UK operations will continue to trade as normal to fulfil orders, whilst conducting a stock liquidation through the retail outlets.
The retailer, which specialises in weddings and occasion dresses, launched in the UK in 2013 and opened its flagship store on Temple Row in Birmingham city centre in November 2016.
Andy Pear and Milan Vuceljic of Moorfields Advisory were appointed joint administrators to the UK business.
Pear said: “Like many retailers David’s Bridal has faced challenges resulting from the COVID-19 pandemic and uncertain economic conditions.
“We are working with our US counterparties to help deliver all current orders to customers and customers should contact their store with any questions.”
David’s Bridal filed for Chapter 11 protection in New Jersey on Monday and launched a similar process in Canada, just days after the US business announced 9,000 job cuts out of a workforce of 11,000 people.
In a statement, David’s Bridal said it “intends to continue exploring a sale of all or some of its assets”.
The $1.3bn-turnover business was founded in 1950 and lays claim to being America’s “leading bridal and special occasion authority”.
But it has been struggling for several years and had previously filed for bankruptcy in 2018.
James Marcum, chief executive of the American parent company, said: “Over the last several years, we have taken meaningful strides in our transformation to fulfill the needs of the brides of today and tomorrow.
“Our business continues to be challenged by the post-Covid environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward.
“We are determined to stay focused on our future, because we believe we have an important role in ensuring that every bride, no matter her budget, can have her perfect dress.”
The UK company warned of a “material uncertainty” about its ability to continue in its 2021 accounts, which were signed off by the board last December.
This was because the US parent company had done a deal in November 2022 to create additional liquidity that was dependent on “continuing compliance” with the loan terms.
The UK business’s most recent published accounts, for 2021, showed a £170,000 loss on revenues of £4.3m. It last recorded an annual profit in 2018.
