Moorfields selected for David's Bridal UK administration

20 April 2023 Consultancy.uk 3 min. read

The UK wing of David’s Bridal has followed its US parent into insolvency proceedings. The firm’s British outlets installed administrators from Moorfields Advisory in mid-April 2023.

Over 70 years of trading in the bridal gown market, David’s Bridal has served over 70 million customers around the world. In 1999 David’s Bridal IPO raised $104 million, and by 2022 the company’s annual revenue was $1.3 billion – however, that masks sustained financial issues the company had faced.

It previously filed for bankruptcy in 2018 after being laden with growing debt and declining sales of wedding dresses. Its resurrected form had incurred further costs amid the pandemic, with lockdown meaning fewer customers were visiting its bricks-and-mortar stores – while its factories had to shut down.

Moorfields selected for David's Bridal UK administration

These pressures recently saw the US arm of David’s Bridal file voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code. The decision came following an evaluation of a wide range of strategic alternatives to maximize value for all stakeholders, including a marketing and sale process for its assets.

At the same time, David’s Bridal UK – which has four stores located in London, Watford, Birmingham and Glasgow, and employs more than 150 team members – commenced similar processes across the Atlantic. In light of its liquidity constraints, the company was unable to finalise its marketing and sale process out of court, and intends to continue exploring a sale of all or some of its assets.

As such, the UK subsidiary has entered administration as of April 2023. Andy Pear and Milan Vuceljic, Partners at Moorfields Advisory, were appointed joint administrators of the UK business, and will now continue to trade the David’s Bridal UK operations as normal to fulfil orders – while conducting a stock liquidation through the retail outlets.

Andy Pear, Partner at Moorfields Advisory, commented, “Like many retailers David’s Bridalhas faced challenges resulting from the Covid-19 pandemic and uncertain economic conditions. We are working with our U.S. counterparties to help deliver all current orders to customers and customers should contact their store with any questions.”

Founded in 2010, Moorfields Advisory has a team of around 40 consultants and staff across the UK. The firm regularly undertakes restructuring work for clients across the country.