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David\u2019s Bridal has a plan to liquidate if it can\u2019t sell its operations, according to a filing with the U.S. Bankruptcy Court for the District of New Jersey from CEO James Marcum.<\/p>\n
The retailer said Monday that it\u2019s in the midst of looking for a buyer during its Chapter 11 process. In his filing, Marcum said that if it doesn\u2019t find a buyer the company \u201cwill turn to an orderly liquidation\u201d of its assets, including those separate from its operations.\u00a0Several parties “have expressed potential interest in certain” assets since February, when the company began reaching out to potential bidders, per Marcum’s filing.<\/p>\n
The retailer has already enlisted liquidation and restructuring firm Gordon Brothers Retail Partners to put procedures in place to wind down business operations and liquidate inventory in all stores, Marcum said.\u00a0In the meantime, David\u2019s Bridal is managing inventory in case it\u2019s sold as a going concern.<\/p>\n
If so, the company \u201cwill quickly pivot to cease store closings at any stores needed to implement the transaction,\u201d Marcum said.\u00a0\u201cThe Debtors believe that this dual-path process will best maximize value for all stakeholders.\u201d<\/p>\n
Even if it remains in business under new ownership, the retailer said it\u2019s evaluating its footprint, and is likely to end up with a smaller fleet. The company runs 294 stores, which includes 278 U.S. locations in 49 states, 12 stores in Canada and four U.K. stores. All are leased, except for one store in New Jersey. The company also has eight franchised stores in Mexico.<\/p>\n
Running this \u201csizable store portfolio,\u201d plus inflationary pressures have led to a spiral of higher inventory and operating costs that \u201chave significantly impacted the company\u2019s revenue,\u201d Marcum said.<\/p>\n<\/p><\/div>\n