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David's Bridal

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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

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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

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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.

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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

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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

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  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.
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