Monday, February 12, 2018

David's Bridal downgraded over potential default

Retail Dive

In David’s Bridal, Moody’s analysts see a specialty retailer beset by problems in its sector, capital structure and of the company’s own making, all of which could force it to refinance or even file for bankruptcy as its debt problems mount.

Increasing competition and "casualization" are challenging the wedding sector, according to Moody's. But David’s Bridal — owned by private equity firms Clayton, Dubilier & Rice and Leonard Green & Partners — also fell behind on its digital investments and suffered from issues in a 2016 website redesign that dropped the search rankings of some products, analysts have said. It’s all led to a 30% drop in the company’s earnings since 2012, according to Moody’s.. . . more