Jump to content

David's Bridal: Difference between revisions

Add links
From Wikipedia, the free encyclopedia
Browse history interactively
← Previous edit
Content deleted Content added
VisualWikitext
No edit summary
m v2.05b - Bot T20 CW#61 - Fix errors for CW project (Reference before punctuation)
 
(43 intermediate revisions by 24 users not shown)
Line 7: Line 7:
| type = Private
| type = Private
| defunct =
| defunct =
| fate =
| num_locations = 298+ stores in [[United States]], [[Canada]], and [[United Kingdom]].
| num_locations = 195 stores in [[United States]], [[Canada]], and [[United Kingdom]].
| key_people = [https://www.linkedin.com/in/james-a-marcum-446424/ James A. Marcum] (Chief Executive Officer)<br>Anthony Troy (Chief Information Officer)<br>Kelly Cook (Chief Marketing Officer)<br>Bob Walker (Chief Field Operations & Store Experience Officer)<br>Nevin Shetty (Chief Partnership Officer)<br>Lizzy Ellingson (Chief Digital Experience Officer)
| key_people = [https://www.linkedin.com/in/james-a-marcum-446424/ James A. Marcum] (Chief Executive Officer)<br>Kelly Cook (President, Brand, Technology and Finance)<br>Nancy Viall (President, Merchandising and Supply Chain)<br>Bob Walker (Chief Operating Officer)<br>Rob Cooper (Chief Financial Officer)<br>Andrea Dauphinee (Chief Human Resources Officer)
| industry = Specialty Retail
| industry = Specialty Retail
| products = Wedding Gowns, Bridesmaids Dresses, Social Occasion Dresses, Guest of a Wedding Dresses, Prom & Homecoming Gowns, Accessories (Jewelry, Handbags, Shoes, Veils, Headpieces), Gifts
| products = Wedding Gowns, Bridesmaids Dresses, Social Occasion Dresses, Guest of a Wedding Dresses, Prom & Homecoming Gowns, Accessories (Jewelry, Handbags, Shoes, Veils, Headpieces), Gifts
Line 14: Line 15:
| operating_income =
| operating_income =
| net_income =
| net_income =
| num_employees = 12,000
| num_employees = 7,000
| owner = {{ubl|Independent {{smaller|(1950–2000)}}|[[May Department Stores]] {{smaller|(2000–05)}}|[[Federated Department Stores]] {{smaller|(2005–06)}}|[[Leonard Green & Partners]] {{smaller|(2006–12)}}|[[Clayton, Dubilier & Rice]] {{smaller|(2012–18)}}|[[Oaktree Capital Management]] {{smaller|(2018–2023)}}|CION Investment Corporation {{smaller|(2023–present)}}}}
| owner = [[Oaktree Capital Management]]
| foundation = {{Start date and age|1950}}<br>[[Fort Lauderdale, Florida]], [[United States|U.S.]]
| foundation = {{Start date and age|1950}}<br>[[Fort Lauderdale, Florida]], [[United States|U.S.]]
| location = [[Conshohocken, Pennsylvania]], U.S.
| location = [[Conshohocken, Pennsylvania]], U.S.
Line 21: Line 22:
| homepage = {{URL | https://www.davidsbridal.com }}
| homepage = {{URL | https://www.davidsbridal.com }}
}}
}}
'''David's Bridal''' is a [[Tailor|clothier]] in the [[United States]] that specializes in [[wedding dress]]es, prom gowns, and other formal wear. It is the largest American bridal-store chain.<ref name="bridal-history">{{cite book|last1=Mead|first1=Rebecca|title=One Perfect Day : The Selling of the American wedding|date=29 July 2008|publisher=Penguin Group|location=New York|isbn=9780143113843|url=http://www.penguin.com/book/one-perfect-day-by-rebecca-mead/9780143113843|access-date=10 September 2016|language=en}}{{Dead link|date=February 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
'''David's Bridal''' is a [[Tailor|clothier]] in the [[United States]] that specializes in [[wedding dress]]es, [[bridesmaid]] dresses, [[prom]] and [[homecoming]] dresses, ''[[quinceañera]]'' dresses, [[flower girl]] dresses, other formal wear, and alterations. Until filing for bankruptcy in 2023, David's Bridal operated 298 stores in 49 states, [[Canada]], and the [[United Kingdom]], making it the largest American bridal-store chain<ref name="bridal-history">{{cite book|last1=Mead|first1=Rebecca|title=One Perfect Day : The Selling of the American wedding|date=29 July 2008|publisher=Penguin Group|location=New York|isbn=9780143113843|url=http://www.penguin.com/book/one-perfect-day-by-rebecca-mead/9780143113843|access-date=10 September 2016|language=en|archive-url=https://web.archive.org/web/20170428120443/http://www.penguinrandomhouse.com/books/293180/one-perfect-day-by-rebecca-mead/9780143113843|archive-date=28 April 2017|url-status=dead}}</ref> It sold 25-30% of all wedding dresses purchased in the United States.<ref>{{Cite web |last=Verdon |first=Joan |title=David's Bridal Is Going After The Wedding Planning Market With New Platform |url=https://www.forbes.com/sites/joanverdon/2023/01/26/davids-bridal-is-going-after-the-wedding-planning-market-with-new-platform/ |access-date=2023-10-17 |website=Forbes |language=en}}</ref>


Since 2000, the chain of stores has been sold numerous times and has gone through two bankruptcy filings within a five-year period. On July 24, 2023, CION Investment Corp. took control of David's Bridal after investing 20 million dollars. With a revolving line of credit and a term loan offered by [[Bank of America]], it was announced that the chain would have 195 stores and 7,000 employees.<ref>{{Cite press release|url=https://www.businesswire.com/news/home/20230724898741/en/Davids-Bridal-and-CION-Investment-Corporation-Complete-Successful-Transaction-and-Announce-Plans-for-Go-Forward-Industry-Leading-Bridal-Company/|title= David's Bridal and CION Investment Corporation Complete Successful Transaction and Announce Plans for Go-Forward Industry Leading Bridal Company|work=Business Wire|date= 24 July 2023|access-date=2023-08-02|language=en}}</ref><ref>{{Cite web|url=https://www.charlotteobserver.com/news/business/whats-in-store/article277612073.html/|title=Charlotte area David's Bridal shops learn their fate after company bankruptcy sale|work=The Charlotte Observer|access-date=2023-08-02|language=en}}</ref><ref>{{Cite web|url=https://www.forbes.com/sites/joanverdon/2023/07/24/davids-bridal-has-a-new-owner-and-more-time-for-its-turnaround/?sh=63d717f035c9|title=David's Bridal Has A New Owner, And More Time For Its Turnaround|work=Forbes|access-date=2023-08-02|language=en}}</ref>
David's Bridal currently operates 298 stores in 49 states, [[Canada]], and the [[United Kingdom]]. It was acquired by [[May Department Stores]] in 2000, which was, in turn, bought by [[Federated Department Stores]] (the parent company of department store giant [[Macy's]]) in 2005. On November 17, 2006, David's Bridal was purchased by [[Leonard Green & Partners]], on the same day that Federated also divested itself of [[After Hours Formalwear]]. On October 11, 2012, [[Clayton, Dubilier & Rice]] announced the completion of its acquisition of David's Bridal, Inc.<ref>{{cite web|title=Press Release|url=https://www.davidsbridal.com/wcsstore/images/wwcm/landingpages/investorrelations/ClaytonDubilierRiceClosesDavidsBridalAcqusition.pdf}}</ref> In January 2019, David's Bridal emerged from bankruptcy. The retailer is now owned by a group of lenders including [[Oaktree Capital Management|Oaktree Capital Group]].<ref>{{cite news |url=https://www.latimes.com/business/la-fi-davids-bridal-bankruptcy-20190118-story.html |title=David's Bridal emerges from bankruptcy after less than two months ''LA Times'', January 18, 2019}}</ref>

==Overview==
David's Bridal was acquired in 2000 by [[May Department Stores]], which was, in turn, bought by [[Federated Department Stores]] (the parent company of department store giant [[Macy's]]) in 2005. On November 17, 2006, the company was purchased by [[Leonard Green & Partners]], on the same day that Federated also divested itself of [[After Hours Formalwear]].

On October 11, 2012, [[Clayton, Dubilier & Rice]] announced the completion of its acquisition of David's Bridal, Inc.<ref>{{cite web|title=Press Release|url=https://www.davidsbridal.com/wcsstore/images/wwcm/landingpages/investorrelations/ClaytonDubilierRiceClosesDavidsBridalAcqusition.pdf|access-date=2020-01-15|archive-date=2021-10-16|archive-url=https://web.archive.org/web/20211016123704/https://www.davidsbridal.com/wcsstore/images/wwcm/landingpages/investorrelations/ClaytonDubilierRiceClosesDavidsBridalAcqusition.pdf|url-status=live}}</ref> After OCM led a group of lenders that took over its administration after the first bankruptcy filing in 2018, CION became the owner of the bridal-store chain when making the same filing in 2023.


==History==
==History==
Beginning in 1945, David Reisberg decided that, instead of making wedding gowns for his pleasure, he would sell them to others for a profit. In 1950, David's Bridal first started as a small bridal boutique in [[Fort Lauderdale, Florida]]. In 1972, Floridian Phillip Youtie purchased the salon with intentions to open new locations. Between that time and 1988, Youtie successfully grew his investment from a single store to 18 boutiques. Many of these boutiques were leased bridal stores that were in department stores under David's Bridal name. Steven Erlbaum, a late childhood friend of Youtie, eventually joined forces with Youtie to help bring David's Bridal to all 50 states. Erlbaum, having preexisting experience from creating the [[Philadelphia]]-based store chain Mr. Good Buys (now defunct), was able to give knowledge to Youtie. Erlbaum and Youtie eventually incorporated the company, structuring it for the national market. A warehouse was built in [[Hallandale Beach, Florida]]—near Fort Lauderdale. The corporate headquarters are in [[Conshohocken, Pennsylvania]].<ref name="bridal-history" />
David's Bridal started in 1950 as a small bridal boutique in [[Fort Lauderdale, Florida]]. In 1972, Floridian Phillip Youtie purchased the salon with intentions to open new locations. Between that time and 1988, Youtie successfully grew his investment from a single store to 18 boutiques. Many of these boutiques were leased bridal stores that were in department stores under David's Bridal name.
Steven Erlbaum, a late childhood friend of Youtie, eventually joined forces with Youtie to help bring David's Bridal to all 50 states. Erlbaum, having preexisting experience from creating the [[Philadelphia]]-based store chain Mr. Good Buys (now defunct), was able to give knowledge to Youtie.
Erlbaum and Youtie eventually incorporated the company, structuring it for the national market. A warehouse was built in [[Hallandale Beach, Florida]]—near Fort Lauderdale. The corporate headquarters are in [[Conshohocken, Pennsylvania]].<ref name="bridal-history" />

Stores at this time stocked only sample gowns in a standard size. Youtie and Erlbaum changed the store model in the late 1980s with a warehouse off [[Interstate 95 in Florida|Interstate 95]] where they stocked designer gowns, discontinued dress and manufacturer overruns at below retail prices. This chain of bridal stores was like none of its kind.

David's Bridal tried to create a no-frills shopping experience for customers looking for high-end, low-cost dresses. Although there was little comfort in the stores, brides-to-be could expect a bargain in a plain, warehouse-like environment.

By the 1990s, small independent bridal shops were struggling to stay in business while more David's Bridal added 12 additional stores between 1994 and 1995 alone. In 1999, the company [[Initial public offering|went public]] with over $104&nbsp;million in assets and selling 8&nbsp;million shares, listed as DABR.


Stores at this time stocked only sample gowns in a standard size. Youtie and Erlbaum changed the store model in the late 1980s with this warehouse off [[Interstate 95 in Florida|Interstate 95]] where they stocked designer gowns, discontinued dress and manufacturer overruns at below retail prices. This chain of bridal stores was like none of its kind. David's Bridal was all about making a no-frills shopping environment for those who need an expensive wedding dress for a fraction of the price. Stores were not comfortable, but more plain and warehouse-like. Although there was little to no comfort in the stores, brides-to-be could expect a bargain. Years later, as the business grew even larger and larger, small stores were starting to go out of business while more David's Bridal stores were being put into the business. Between 1994 and 1995, 12 stores were added to the bridal corporation. In 1999, DABR [[Initial public offering|went public]] with over $104&nbsp;million in assets and selling 8&nbsp;million shares. In 2000, the [[May Department Stores Company]] bought David's Bridal from Youtie and Erlbaum for $436&nbsp; million.<ref name="bridal-history" /> By this time, David's Bridal was the largest retailer of bridal gowns and wedding-related merchandise. On November 17, 2006, David's Bridal was purchased by Leonard Green & Partners. David's Bridal is now the only nationwide competitor of bridal stores.<ref name="bridal-history" /> One in four American brides are dressed by David's Bridal.<ref name="bridal-history" />
When May Department Stores Co. bought it from Youtie and Erlbaum for $436 million in 2000,<ref name="bridal-history" /> David's Bridal was the largest retailer of bridal gowns and wedding-related merchandise. When sold to Leonard Green & Partners on November 17, 2006, it became the only nationwide competitor of bridal stores<ref name="bridal-history" /> - one in four American brides are dressed by David's Bridal.<ref name="bridal-history" />


David's Bridal agreed to be acquired by the private-equity firm [[Clayton, Dubilier & Rice]] in 2012 for a price around $900&nbsp;million.<ref>{{cite news|last=COVERT AND KOSMAN|first=JAMES AND JOSH|title=Happily ever after: David's Bridal is sold for about $900M |url=http://www.nypost.com/p/news/business/happily_ever_after_XYm9eVk4AGRh1aOb4dvGlJ|access-date=23 August 2012|newspaper=The New York Post|date=23 August 2012}}</ref>
In 2012, the company agreed to be acquired by the private-equity firm Clayton, Dubilier & Rice (CD&R) for a price around $900&nbsp;million.<ref>{{cite news|last=COVERT AND KOSMAN|first=JAMES AND JOSH|title=Happily ever after: David's Bridal is sold for about $900M|url=http://www.nypost.com/p/news/business/happily_ever_after_XYm9eVk4AGRh1aOb4dvGlJ|access-date=23 August 2012|newspaper=The New York Post|date=23 August 2012|archive-date=24 August 2012|archive-url=https://web.archive.org/web/20120824005204/http://www.nypost.com/p/news/business/happily_ever_after_XYm9eVk4AGRh1aOb4dvGlJ|url-status=live}}</ref> On October 11, CD&R announced the completion of its acquisition of David's Bridal, Inc. in a deal that valued the company at $1.05&nbsp;billion.<ref>{{cite web|title=Press Release|url=http://www.bridal-dress-online.com/wcsstore/images/wwcm/landingpages/investorrelations/ClaytonDubilierRiceClosesDavidsBridalAcqusition.pdf|access-date=2013-10-08|archive-date=2022-12-30|archive-url=https://web.archive.org/web/20221230222600/http://www.bridal-dress-online.com/wcsstore/images/wwcm/landingpages/investorrelations/ClaytonDubilierRiceClosesDavidsBridalAcqusition.pdf|url-status=live}}</ref>


⚫
In August 2016, David's announced the former president and CEO of the [[Gap Inc.]], Paul Pressler as chief executive officer.<ref>{{cite news |last=Wilson |first=Marianne |url=https://www.chainstoreage.com/article/davids-bridal-ceo-steps-down-replaced-former-gap-head/ |title=David's Bridal CEO steps down; replaced by former Gap head |work=Chain Store Age |date=2016-08-31 |access-date=2017-11-17 |archive-date=2016-12-02 |archive-url=https://web.archive.org/web/20161202185520/http://www.chainstoreage.com/article/davids-bridal-ceo-steps-down-replaced-former-gap-head |url-status=dead }}</ref> In May 2018, Scott Key was named chief executive officer.<ref>{{Cite press release|url=https://www.prnewswire.com/news-releases/davids-bridal-appoints-scott-key-as-chief-executive-officer-300649911.html|title=David's Bridal Appoints Scott Key as Chief Executive Officer|last=Bridal|first=David's|website=www.prnewswire.com|language=en|access-date=2019-04-29|archive-date=2019-04-30|archive-url=https://web.archive.org/web/20190430032517/https://www.prnewswire.com/news-releases/davids-bridal-appoints-scott-key-as-chief-executive-officer-300649911.html|url-status=live}}</ref>
On October 11, 2012, Clayton, Dubilier & Rice announced the completion of its acquisition of David's Bridal, Inc. in a deal that valued the company at $1.05&nbsp;billion.<ref>{{cite web|title=Press Release|url=http://www.bridal-dress-online.com/wcsstore/images/wwcm/landingpages/investorrelations/ClaytonDubilierRiceClosesDavidsBridalAcqusition.pdf}}</ref>


On November 19, 2018, David's filed for [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy]].<ref>[https://www.usatoday.com/story/money/2018/11/19/davids-bridal-bankruptcy/2053083002/ David's Bridal files for Chapter 11 bankruptcy protection, aims to stay in business] {{Webarchive|url=https://web.archive.org/web/20181120060714/https://www.usatoday.com/story/money/2018/11/19/davids-bridal-bankruptcy/2053083002/ |date=2018-11-20 }} ''USA Today'', November 19, 2018</ref> After emerging from bankruptcy in January 2019, the retailer is now managed by a group of lenders including Oaktree Capital Group<ref>{{cite news |url=https://www.latimes.com/business/la-fi-davids-bridal-bankruptcy-20190118-story.html |title=David's Bridal emerges from bankruptcy after less than two months ''LA Times'', January 18, 2019 |access-date=April 25, 2019 |archive-date=April 25, 2019 |archive-url=https://web.archive.org/web/20190425164556/https://www.latimes.com/business/la-fi-davids-bridal-bankruptcy-20190118-story.html |url-status=live }}</ref> and Tom Lynch, former chief executive at [[Frederick's of Hollywood]], succeeded Key as the interim CEO in March - it also announced the former interim chief revenue officer and CFO at [[National Stores]], Curt Kroll, would take the role of CFO.<ref>{{Cite news|url=https://www.wsj.com/articles/davids-bridal-names-new-leadership-after-emerging-from-bankruptcy-11551741530|title=David's Bridal Names New Leadership After Emerging From Bankruptcy|last=Shumsky|first=Tatyana|date=2019-03-04|work=Wall Street Journal|access-date=2019-04-29|language=en-US|issn=0099-9660|archive-date=2019-04-30|archive-url=https://web.archive.org/web/20190430032417/https://www.wsj.com/articles/davids-bridal-names-new-leadership-after-emerging-from-bankruptcy-11551741530|url-status=live}}</ref>
⚫
In August 2016, David's announced the former president and CEO of the [[Gap Inc.]], Paul Pressler as chief executive officer.<ref>{{cite news |last=Wilson |first=Marianne |url=https://www.chainstoreage.com/article/davids-bridal-ceo-steps-down-replaced-former-gap-head/ |title=David's Bridal CEO steps down; replaced by former Gap head |work=Chain Store Age |date=2016-08-31 |access-date=2017-11-17 |archive-date=2016-12-02 |archive-url=https://web.archive.org/web/20161202185520/http://www.chainstoreage.com/article/davids-bridal-ceo-steps-down-replaced-former-gap-head |url-status=dead }}</ref>


In May 2018, Scott Key was named chief executive officer.<ref>{{Cite press release|url=https://www.prnewswire.com/news-releases/davids-bridal-appoints-scott-key-as-chief-executive-officer-300649911.html|title=David's Bridal Appoints Scott Key as Chief Executive Officer|last=Bridal|first=David’s|website=www.prnewswire.com|language=en|access-date=2019-04-29}}</ref>
On June 24, 2019, David's appointed James A. Marcum as the chief executive officer, replacing Lynch who had been the interim CEO.<ref>{{Cite news|url=https://www.prnewswire.com/news-releases/davids-bridal-appoints-james-marcum-as-chief-executive-officer-300873721.html|title=David's Bridal Appoints James Marcum as Chief Executive Officer|date=2019-06-24|access-date=2019-06-25|archive-date=2019-07-06|archive-url=https://web.archive.org/web/20190706213824/https://www.prnewswire.com/news-releases/davids-bridal-appoints-james-marcum-as-chief-executive-officer-300873721.html|url-status=live}}</ref>


===Bankruptcy and CION Investment Corp.===
On November 19, 2018, David's filed for [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy]].<ref>[https://www.usatoday.com/story/money/2018/11/19/davids-bridal-bankruptcy/2053083002/ David's Bridal files for Chapter 11 bankruptcy protection, aims to stay in business] ''USA Today'', November 19, 2018</ref>
David's Bridal filed for [[bankruptcy]] in November 2018, emerging two months later under ownership of a group of lenders including [[Oaktree Capital Management]] (OCM).<ref>{{cite news |title=David's Bridal emerges from bankruptcy after less than two months ''LA Times'', January 18, 2019 |url=https://www.latimes.com/business/la-fi-davids-bridal-bankruptcy-20190118-story.html |url-status=live |access-date=April 25, 2019 |archive-url=https://web.archive.org/web/20190425164556/https://www.latimes.com/business/la-fi-davids-bridal-bankruptcy-20190118-story.html |archive-date=April 25, 2019}}</ref>


⚫
On April 7, 2023, it was announced that David's was considering bankruptcy for the second time in five years.<ref>{{Cite web|url=https://www.nytimes.com/2023/04/07/business/dealbook/davids-bridal-bankruptcy.html|title=David's bridal is said to be considering bankruptcy, again|date=April 7, 2023|access-date=April 17, 2023|website=The New York Times|language=en|archive-date=April 17, 2023|archive-url=https://web.archive.org/web/20230417103501/https://www.nytimes.com/2023/04/07/business/dealbook/davids-bridal-bankruptcy.html|url-status=live}}</ref> A week later, on April 14, the company announced it would lay off 9,000, or 82%, of its employees from its stores, corporate headquarters, and distribution centers.<ref>{{Cite web|url=https://www.cnn.com/2023/04/14/business/davids-bridal-layoffs/index.html|title=David's Bridal is laying off over 9,000 workers|date=April 14, 2023|access-date=April 17, 2023|website=CNN|language=en|archive-date=April 16, 2023|archive-url=https://web.archive.org/web/20230416173300/https://www.cnn.com/2023/04/14/business/davids-bridal-layoffs/index.html|url-status=live}}</ref> On April 17, 2023, David's Bridal filed for Chapter 11 bankruptcy again, citing challenges brought on by the [[COVID-19 pandemic]] and uncertain economic conditions, and could close all of its stores and liquidate if a buyer is not found within the next few weeks.<ref name="bankrupt170423">{{Cite web |date=April 17, 2023 |title=David's Bridal files for Chapter 11 bankruptcy as it looks for buyer |url=https://www.pennlive.com/business/2023/04/davids-bridal-files-for-chapter-11-bankruptcy-again.html |url-status=live |archive-url=https://web.archive.org/web/20230417055900/https://www.pennlive.com/business/2023/04/davids-bridal-files-for-chapter-11-bankruptcy-again.html |archive-date=April 17, 2023 |access-date=April 17, 2023 |website=Penn Live |language=en}}</ref>{{Not in source given|date=April 2023|reason=The source mentions nothing about covid or potential liquidation, only that the company is reorganizing and seeking a buyer. Given the specificity of details, the wrong citation might be used.}} It has now announced to employees that they will be closing half of the stores - the other half of the stores that remain open are the strongest of all the stores.{{cn|date=June 2023}}
In January 2019, David's Bridal emerged from bankruptcy. The retailer is now owned by a group of lenders including [[Oaktree Capital Management|Oaktree Capital Group]].<ref>{{cite news |url=https://www.latimes.com/business/la-fi-davids-bridal-bankruptcy-20190118-story.html |title=David's Bridal emerges from bankruptcy after less than two months ''LA Times'', January 18, 2019}}</ref>


On July 14, 2023 Oaktree Capital Management announced it would sell Davids's Bridal to CION Investment Corporation.<ref>{{Cite web |publisher=Reuters |date=2023-07-14 |title=David's Bridal avoids shutdown with no-cash bankruptcy sale |url=https://nypost.com/2023/07/14/davids-bridal-avoids-shutdown-with-no-cash-bankruptcy-sale/ |access-date=2023-07-14 |language=en-US}}</ref> Ten days later, CION made an investment and became the new owner of the retailer.
Tom Lynch, former chief executive at [[Frederick's of Hollywood]], succeeded Scott Key as the interim chief executive officer in March 2019. David's Bridal also announced the former interim chief revenue officer and CFO at [[National Stores|National Stores, Inc.]], Curt Kroll, would take the role of Chief Financial Officer.<ref>{{Cite news|url=https://www.wsj.com/articles/davids-bridal-names-new-leadership-after-emerging-from-bankruptcy-11551741530|title=David's Bridal Names New Leadership After Emerging From Bankruptcy|last=Shumsky|first=Tatyana|date=2019-03-04|work=Wall Street Journal|access-date=2019-04-29|language=en-US|issn=0099-9660}}</ref>


=== Omnichannel Customer Experience ===
On June 24, 2019, David's appointed James A. Marcum as the chief executive officer, replacing Tom Lynch who had been the interim CEO.<ref>{{Cite news|url=https://www.prnewswire.com/news-releases/davids-bridal-appoints-james-marcum-as-chief-executive-officer-300873721.html|title=David's Bridal Appoints James Marcum as Chief Executive Officer|date=2019-06-24}}</ref>
When David's Bridal entered bankruptcy in 2019, the customer service experience was a barrier to growth. In-store pricing didn't match the prices from online sales, and returns couldn't be made in-store.<ref name=":0" /> “We were doing all these crazy things, like one-day flash sales online that we didn't offer in the store. And the bride's standing there with her phone,” said CEO Jim Marcum.<ref name=":0" />


Since emerging from Chapter 11 bankruptcy, the brand has focused on improving its omnichannel customer experience and launched Pearl, an app-based wedding planning vendor marketplace launched in January 2023.<ref name=":0">{{Cite web |last=Daniels |first=Melissa |date=2023-01-31 |title=Why David's Bridal is launching a new wedding planning tool |url=https://www.modernretail.co/marketing/why-davids-bridal-is-launching-a-new-wedding-planning-tool/ |access-date=2023-10-17 |website=Modern Retail |language=en}}</ref>
⚫
On April 7, 2023, it was announced that David's was considering bankruptcy for the second time in five years.<ref>{{Cite web|url=https://www.nytimes.com/2023/04/07/business/dealbook/davids-bridal-bankruptcy.html|title=David's bridal is said to be considering bankruptcy, again|date=April 7, 2023|access-date=April 17, 2023|website=The New York Times|language=en}}</ref> A week later, on April 14, 2023, David's announced it would lay off 9,000, or 82%, of its employees from its stores, corporate headquarters, and distribution centers.<ref>{{Cite web|url=https://www.cnn.com/2023/04/14/business/davids-bridal-layoffs/index.html|title=David's Bridal is laying off over 9,000 workers|date=April 14, 2023|access-date=April 17, 2023|website=CNN|language=en}}</ref> On April 17, 2023, David's filed for Chapter 11 bankruptcy again.<ref>{{Cite web|url=https://www.pennlive.com/business/2023/04/davids-bridal-files-for-chapter-11-bankruptcy-again.html|title=David’s Bridal files for Chapter 11 bankruptcy as it looks for buyer|date=April 17, 2023|access-date=April 17, 2023|website=Penn Live|language=en}}</ref>


==References==
==References==
Line 72: Line 90:
[[Category:2012 mergers and acquisitions]]
[[Category:2012 mergers and acquisitions]]
[[Category:2019 mergers and acquisitions]]
[[Category:2019 mergers and acquisitions]]
[[Category:2023 mergers and acquisitions]]
[[Category:Wedding dresses]]
[[Category:Wedding dresses]]

Latest revision as of 04:29, 19 November 2024

David's Bridal
Company typePrivate
IndustrySpecialty Retail
Founded1950; 74 years ago (1950)
Fort Lauderdale, Florida, U.S.
HeadquartersConshohocken, Pennsylvania, U.S.
Number of locations
195 stores in United States, Canada, and United Kingdom.
Key people
James A. Marcum (Chief Executive Officer)
Kelly Cook (President, Brand, Technology and Finance)
Nancy Viall (President, Merchandising and Supply Chain)
Bob Walker (Chief Operating Officer)
Rob Cooper (Chief Financial Officer)
Andrea Dauphinee (Chief Human Resources Officer)
ProductsWedding Gowns, Bridesmaids Dresses, Social Occasion Dresses, Guest of a Wedding Dresses, Prom & Homecoming Gowns, Accessories (Jewelry, Handbags, Shoes, Veils, Headpieces), Gifts
Owner
Number of employees
7,000
Websitewww.davidsbridal.com

David's Bridal is a clothier in the United States that specializes in wedding dresses, bridesmaid dresses, prom and homecoming dresses, quinceañera dresses, flower girl dresses, other formal wear, and alterations. Until filing for bankruptcy in 2023, David's Bridal operated 298 stores in 49 states, Canada, and the United Kingdom, making it the largest American bridal-store chain[1] It sold 25-30% of all wedding dresses purchased in the United States.[2]

Since 2000, the chain of stores has been sold numerous times and has gone through two bankruptcy filings within a five-year period. On July 24, 2023, CION Investment Corp. took control of David's Bridal after investing 20 million dollars. With a revolving line of credit and a term loan offered by Bank of America, it was announced that the chain would have 195 stores and 7,000 employees.[3][4][5]

Overview

[edit]

David's Bridal was acquired in 2000 by May Department Stores, which was, in turn, bought by Federated Department Stores (the parent company of department store giant Macy's) in 2005. On November 17, 2006, the company was purchased by Leonard Green & Partners, on the same day that Federated also divested itself of After Hours Formalwear.

On October 11, 2012, Clayton, Dubilier & Rice announced the completion of its acquisition of David's Bridal, Inc.[6] After OCM led a group of lenders that took over its administration after the first bankruptcy filing in 2018, CION became the owner of the bridal-store chain when making the same filing in 2023.

History

[edit]

David's Bridal started in 1950 as a small bridal boutique in Fort Lauderdale, Florida. In 1972, Floridian Phillip Youtie purchased the salon with intentions to open new locations. Between that time and 1988, Youtie successfully grew his investment from a single store to 18 boutiques. Many of these boutiques were leased bridal stores that were in department stores under David's Bridal name.

Steven Erlbaum, a late childhood friend of Youtie, eventually joined forces with Youtie to help bring David's Bridal to all 50 states. Erlbaum, having preexisting experience from creating the Philadelphia-based store chain Mr. Good Buys (now defunct), was able to give knowledge to Youtie.

Erlbaum and Youtie eventually incorporated the company, structuring it for the national market. A warehouse was built in Hallandale Beach, Florida—near Fort Lauderdale. The corporate headquarters are in Conshohocken, Pennsylvania.[1]

Stores at this time stocked only sample gowns in a standard size. Youtie and Erlbaum changed the store model in the late 1980s with a warehouse off Interstate 95 where they stocked designer gowns, discontinued dress and manufacturer overruns at below retail prices. This chain of bridal stores was like none of its kind.

David's Bridal tried to create a no-frills shopping experience for customers looking for high-end, low-cost dresses. Although there was little comfort in the stores, brides-to-be could expect a bargain in a plain, warehouse-like environment.

By the 1990s, small independent bridal shops were struggling to stay in business while more David's Bridal added 12 additional stores between 1994 and 1995 alone. In 1999, the company went public with over $104 million in assets and selling 8 million shares, listed as DABR.

When May Department Stores Co. bought it from Youtie and Erlbaum for $436 million in 2000,[1] David's Bridal was the largest retailer of bridal gowns and wedding-related merchandise. When sold to Leonard Green & Partners on November 17, 2006, it became the only nationwide competitor of bridal stores[1] - one in four American brides are dressed by David's Bridal.[1]

In 2012, the company agreed to be acquired by the private-equity firm Clayton, Dubilier & Rice (CD&R) for a price around $900 million.[7] On October 11, CD&R announced the completion of its acquisition of David's Bridal, Inc. in a deal that valued the company at $1.05 billion.[8]

In August 2016, David's announced the former president and CEO of the Gap Inc., Paul Pressler as chief executive officer.[9] In May 2018, Scott Key was named chief executive officer.[10]

On November 19, 2018, David's filed for Chapter 11 bankruptcy.[11] After emerging from bankruptcy in January 2019, the retailer is now managed by a group of lenders including Oaktree Capital Group[12] and Tom Lynch, former chief executive at Frederick's of Hollywood, succeeded Key as the interim CEO in March - it also announced the former interim chief revenue officer and CFO at National Stores, Curt Kroll, would take the role of CFO.[13]

On June 24, 2019, David's appointed James A. Marcum as the chief executive officer, replacing Lynch who had been the interim CEO.[14]

Bankruptcy and CION Investment Corp.

[edit]

David's Bridal filed for bankruptcy in November 2018, emerging two months later under ownership of a group of lenders including Oaktree Capital Management (OCM).[15]

On April 7, 2023, it was announced that David's was considering bankruptcy for the second time in five years.[16] A week later, on April 14, the company announced it would lay off 9,000, or 82%, of its employees from its stores, corporate headquarters, and distribution centers.[17] On April 17, 2023, David's Bridal filed for Chapter 11 bankruptcy again, citing challenges brought on by the COVID-19 pandemic and uncertain economic conditions, and could close all of its stores and liquidate if a buyer is not found within the next few weeks.[18][failed verification] It has now announced to employees that they will be closing half of the stores - the other half of the stores that remain open are the strongest of all the stores.[citation needed]

On July 14, 2023 Oaktree Capital Management announced it would sell Davids's Bridal to CION Investment Corporation.[19] Ten days later, CION made an investment and became the new owner of the retailer.

Omnichannel Customer Experience

[edit]

When David's Bridal entered bankruptcy in 2019, the customer service experience was a barrier to growth. In-store pricing didn't match the prices from online sales, and returns couldn't be made in-store.[20] “We were doing all these crazy things, like one-day flash sales online that we didn't offer in the store. And the bride's standing there with her phone,” said CEO Jim Marcum.[20]

Since emerging from Chapter 11 bankruptcy, the brand has focused on improving its omnichannel customer experience and launched Pearl, an app-based wedding planning vendor marketplace launched in January 2023.[20]

References

[edit]
  1. ^ a b c d e Mead, Rebecca (29 July 2008). One Perfect Day : The Selling of the American wedding. New York: Penguin Group. ISBN 9780143113843. Archived from the original on 28 April 2017. Retrieved 10 September 2016.
  2. ^ Verdon, Joan. "David's Bridal Is Going After The Wedding Planning Market With New Platform". Forbes. Retrieved 2023-10-17.
  3. ^ "David's Bridal and CION Investment Corporation Complete Successful Transaction and Announce Plans for Go-Forward Industry Leading Bridal Company". Business Wire (Press release). 24 July 2023. Retrieved 2023-08-02.
  4. ^ "Charlotte area David's Bridal shops learn their fate after company bankruptcy sale". The Charlotte Observer. Retrieved 2023-08-02.
  5. ^ "David's Bridal Has A New Owner, And More Time For Its Turnaround". Forbes. Retrieved 2023-08-02.
  6. ^ "Press Release" (PDF). Archived (PDF) from the original on 2021-10-16. Retrieved 2020-01-15.
  7. ^ COVERT AND KOSMAN, JAMES AND JOSH (23 August 2012). "Happily ever after: David's Bridal is sold for about $900M". The New York Post. Archived from the original on 24 August 2012. Retrieved 23 August 2012.
  8. ^ "Press Release" (PDF). Archived (PDF) from the original on 2022-12-30. Retrieved 2013-10-08.
  9. ^ Wilson, Marianne (2016-08-31). "David's Bridal CEO steps down; replaced by former Gap head". Chain Store Age. Archived from the original on 2016-12-02. Retrieved 2017-11-17.
  10. ^ Bridal, David's. "David's Bridal Appoints Scott Key as Chief Executive Officer". www.prnewswire.com (Press release). Archived from the original on 2019-04-30. Retrieved 2019-04-29.
  11. ^ David's Bridal files for Chapter 11 bankruptcy protection, aims to stay in business Archived 2018-11-20 at the Wayback Machine USA Today, November 19, 2018
  12. ^ "David's Bridal emerges from bankruptcy after less than two months LA Times, January 18, 2019". Archived from the original on April 25, 2019. Retrieved April 25, 2019.
  13. ^ Shumsky, Tatyana (2019-03-04). "David's Bridal Names New Leadership After Emerging From Bankruptcy". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2019-04-30. Retrieved 2019-04-29.
  14. ^ "David's Bridal Appoints James Marcum as Chief Executive Officer". 2019-06-24. Archived from the original on 2019-07-06. Retrieved 2019-06-25.
  15. ^ "David's Bridal emerges from bankruptcy after less than two months LA Times, January 18, 2019". Archived from the original on April 25, 2019. Retrieved April 25, 2019.
  16. ^ "David's bridal is said to be considering bankruptcy, again". The New York Times. April 7, 2023. Archived from the original on April 17, 2023. Retrieved April 17, 2023.
  17. ^ "David's Bridal is laying off over 9,000 workers". CNN. April 14, 2023. Archived from the original on April 16, 2023. Retrieved April 17, 2023.
  18. ^ "David's Bridal files for Chapter 11 bankruptcy as it looks for buyer". Penn Live. April 17, 2023. Archived from the original on April 17, 2023. Retrieved April 17, 2023.
  19. ^ "David's Bridal avoids shutdown with no-cash bankruptcy sale". Reuters. 2023-07-14. Retrieved 2023-07-14.
  20. ^ a b c Daniels, Melissa (2023-01-31). "Why David's Bridal is launching a new wedding planning tool". Modern Retail. Retrieved 2023-10-17.
[edit]
Retrieved from "https://en.wikipedia.org/enwiki/w/index.php?title=David%27s_Bridal&oldid=1258341617"