David's Bridal UK Limited - Case Update

Andrew Pear and Milan Vuceljic of Moorfields have provided an update on their administration of the UK arm of an international bridal giant.

David’s Bridal UK entered administration in April after its US parent obtained protection under Chapter 11 of the US Bankruptcy Code. Having previously filed for bankruptcy in 2018, the company suffered financial difficulties during the pandemic, with lockdowns forcing the closure of stores and factories. 

With no parties interested in buying the business or assets, the joint administrators continued to trade the company’s four UK locations to maximise realisations from inventory and to allow dresses to be delivered to those who pre-ordered prior to the administration, reducing claims for unfilled orders. Agreements were reached with suppliers to continue to provide retail services and employees were retained during the wind down.

Gordon Brothers were engaged as agents to assist with trading and sales. Significant marketing was undertaken to promote discounts and advertise closing-down sales as part of the trading strategy. Total sales of £1.38m, relating to the sale of stock and alteration to garments, were made through trading the four retail stores. All of these stores have now been closed and vacated.

Although Barclays had an outstanding charge at the date of the appointment, no monies were owing to it. Unsecured creditors are not expected to receive a distribution, and the joint administrators intend to exit the administration by filing a notice of dissolution with the Registrar of Companies.

The joint administrators’ progress report can be found HERE. They have been assisted by Taylor Wessing.