Wedding gown retailer David’s Bridal Inc. reached a debt deal that would head off a second trip to bankruptcy court, according to people with knowledge of the matter. In all, it operates 300 stores in the U.S., Canada and UK, and franchise locations in Mexico.
Since its launch in 2011, the company has opened brick-and-mortar stores, and emerged as one of the biggest brands to watch in recent years. Currently UNTUCKit is on track to reach 100 retail locations by 2022. The once digital-only brand now has more than 75 physical retail stores across the U.S. and Canada.
Target for years eyed Canada after perfecting its own retail and expansion strategy in the U.S. It began with an unrealistic timeline, worsened with glitchy operational software, was compounded with the lack of executives experienced in the country, and became deeply problematic when the retailer was unable to get its shelves fully stocked by the time its Canada stores opened. Ultimately, customers were left angry and alienated, and the whole venture ended in bankruptcy.
The extent of Target's Canada disaster may have "soured the waters" for other retailers looking to expand into the country, said Eric Matusiak, partner and retail leader for consulting firm BDO Canada (who did some consulting work for Target's Canadian operation in a previous position).