Wedding season might soon return to the US now that COVID-19 restrictions are getting eased and vaccination rollout is picking up pace.
At least, US clothing retailer David’s Bridal is very confident of the same, as it closes on a US $ 70 million term loan from the credit subsidiary of Canada Pension Plan Investment Board.
The retailer said that taking the US $ 70 million loan means that now it has US $ 63 million in unrestricted cash.
Besides, the retailer added, it had no borrowings on its US $ 125 million revolving credit facility.
The American wedding retailer, reportedly, told media that it plans to utilise the loan amount to finance operations as well as for corporate purposes.
Wedding retailers, in particular, were badly hit in 2020 and David’s Bridal was no exception. While it cut salaries and furloughed employees, the retailer also launched new initiatives.
Besides launching wedding planning tools for shoppers, it also introduced virtual stylists and appointments and also got into augmented reality.
The retailer seems to have understood that enhancing shopping experience through new initiatives and technology is the only way to go forward.
In this regard, the new loan is expected to help David’s Bridal fully capitalise on the unique opportunity lying ahead.
As per The Wedding Report estimates, there could be around 2.8 million weddings in 2021, which will be significantly higher than what it was in 2019.
Founded in 1950, David’s Bridal specialises in wedding dresses, prom gowns and other formalwear, and is the largest American bridal-store chain.