Nov. 19 (UPI) -- David's Bridal filed for Chapter 11 bankruptcy protection Monday, citing losses on its books and the need for restructuring that could ease $400 million in debts.
The bankruptcy protection was driven by the heavy debt burden David's Bridal carries on its books and the move could reduce the load by $400 million, the company said in a statement to UPI.
The national wedding retailer said its stores will remain open during the restructuring, thanks to the $60 million in refinancing and a $125 million loan. The company filing for Chapter 11 protections means, if approved, it wouldn't have to sell off assets to pay creditors.
"For more than 60 years, David's has delivered beautiful, high-quality dresses and accessories for our customers' most special occasions, and the actions we are taking will enable us to build on that tradition," CEO Scott Key said in CNBC's report. "We are implementing our consensual restructuring plan from a position of strength and, with the support of our lenders, noteholders and equity holders, the plan will allow us to reduce our debt significantly while continuing to run our business as usual."
David's Bridal was acquired in 2012 by private equity firm Clayton, Dubilier & Rice for $1 billion.
The company said the bankruptcy proceedings will not affect existing or future wedding appointments.
In August, David's Bridal announced the acquisition of Blueprint Registry, a universal gift registry that features gifts from all retailers.
More couples are opting for cheaper wedding outfits or are delaying getting married altogether. The average number of marriages per 1,000 Americans was 6.9 in 2016 down from 8.2 in 2000.
David's Bridal, founded in 1950, specializes in wedding and prom dresses, and other formal attire.