Wedding dress retailer David’s Bridal has filed for reorganisation under Chapter 11 of the United States Bankruptcy Code in the District of Delaware in a move to implement its restructuring support agreement (RSA).

The RSA is expected to reduce the retailer’s debt by more than $400m, as well as offer financial flexibility to support long-term growth prospects.

It is currently supported by a majority of the retailer’s term loan lenders and substantially all of its senior noteholders and equity holders.

As part of the Chapter 11 process, the retailer has also filed a number of customary motions seeking authorisation to support its operations during the court-supervised process.

These motions include the authority to continue payment of employee wages and benefits and honour customer payments and orders for dresses and alterations.

“Today’s announcement is just the next step in our efforts to proactively secure David’s Bridal for a long, successful future.”

David’s Bridal will continue to operate its business throughout the court-supervised restructuring process, which is expected to close by early January.

The company’s more than 300 stores will remain open for customers while its online store continues to serve orders. Its bridal appointments will not be impacted.

David’s Bridal CEO Scott Key said: “Today’s announcement is just the next step in our efforts to proactively secure David’s Bridal for a long, successful future.

“We are implementing our consensual restructuring plan from a position of strength and, with the support of our lenders, noteholders and equity holders, the plan will allow us to reduce our debt significantly while continuing to run our business as usual.

“We will be able to move through the Court process very quickly, and in the end, we will be able to allocate even more of our resources towards making strategic investments in digital technologies and talent that will drive long-term growth and operational excellence at David’s Bridal.”

In addition, the company has received commitments for $60m in new debtor-in-possession (DIP) financing from its current term loan lenders and recommitment of its existing $125m ABL revolving credit facility to support its continued operations during the restructuring.