David’s Bridal Inc. is making preparations for a bankruptcy filing if the retailer can’t reach an out-of-court deal with its creditors, Bloomberg reported. The goal is to ease the chain’s debt load of about $760 million with a pre-negotiated restructuring plan either in or out of court. Either way, David’s has no plans for major store closures or liquidations, and the business would keep operating regardless of a court filing. The wedding-gown merchant has until Nov. 14 to make an interest payment that it skipped last month after initial negotiations with three creditor groups stalled. Active discussions with debt holders are still underway and the situation remains fluid. David’s and three creditor groups have gone back and forth with out-of-court restructuring proposals for weeks. Early discussions contemplated a rights offering backed by existing noteholders including Solace Capital Partners and Oaktree Capital Group, a majority bond and loan holder. Those talks broke down after the financing from the funds did not materialize and creditors failed to agree on the pricing and terms of the proposed new debt structure.
