A company's ability to manage its debt and maintain a steady stream of cash flow is imperative to its ability to succeed, attain growth and remain competitive. Without a solid financial foundation, other aspects of operating an organization just cannot function and can quickly send everything spiraling out of control.
In a recent press release, it was announced that the bridal extravaganza giant, David's Bridal, has officially filed for bankruptcy protection following the nonpayment of a significant debt. Experts see the somewhat surprising announcement as something that was caused by several different contributing factors including changes in the economy, growing competition among online bridal shops and people choosing to get married later on in life. Trends also seem to suggest that many couples are looking to spend less on their wedding.
A restructuring deal was suggested to help the bridal store to cut back its debt from an astounding $750 million to just over $300 million to keep the doors open on its 200+ stores across the country. Despite the news that people are hearing about the bankruptcy filings, David's Bridal reassured clients that their orders would continue to be processed without any delays and that operations would be unaffected.
If a business recognizes that it is suffering, it may be interested in hiring an attorney to explore options for strengthening its financial foundation. This decision may allow them to become educated on their options to hopefully find a solution that will enable them to continue operating without so much stress stemming from unpaid debts.
Source: The Spokesman-Review, "David's Bridal files for bankruptcy protection," Nov. 19, 2018