On January 23, 2019, it was reported, a trustee of The Limited Creditor's Liquidating Trust is suing the apparel company's former private equity owner Sun Capital Partners with hopes "to avoid and recover" an alleged $42 million fraudulent transfer made by The Limited to affiliates of Sun Capital, according to recent court documents. Through the lawsuit, the trustee seeks to recover the funds for the benefit of creditors. "In essence, Sun Capital siphoned whatever value it could from a company that was already struggling for survival, thereby hastening its demise at the expense of unsecured creditors," according to the documents. A representative from Sun Capital declined to comment on the story to Retail Dive.
On January 22, 2019, it was reported, in just shy of two months, David's Bridal is emerging from bankruptcy, according to a company press release. With a "substantially stronger balance sheet and a clear strategy for the future," the company said it is now "poised for long-term growth." The company reduced its debt by roughly $450 million and is now owned by a group of lenders, including Oaktree Capital Group, according to previously released details of its restructuring plan. David's Bridal also announced several new efforts that will roll out this year, including lower prices on best-sellers, expanded sizing between sizes zero and 30, a broader online assortment in bridesmaids and special occasion dresses, and more in-store events.
On January 22, 2019, Express, Inc. announced the departure of CEO David Kornberg, who will also no longer serve as president or as a member of the board of directors, effective immediately. He will remain employed by the company through Feb. 21, however. The board has appointed Matthew Moellering to serve as chief executive in the interim while a permanent CEO and president is appointed, according to a company press release. Moellering, who has been with Express since 2006, has served as executive vice president and chief operating officer there since September 2011 and will continue in those roles while taking on the CEO duties, according to the release. Before going to Express, he served in various roles with former Express owner Limited Brands (now L Brands) and Procter & Gamble, and serves on the board of privately held retailer L.L. Bean, the company said.
On January 22, 2019, J. Crew announced the retirement of its chairman and former CEO Millard "Mickey" Drexler, according to a press release. Drexler is leaving the company to "devote his full time to the development of Drexler Ventures, LLC and other interests." Chad Leat, who has served as a director of the company since 2017 and is a retired vice chairman of Global Banking at Citigroup, was elected to succeed Drexler as chairman. Drexler will continue to serve as a strategic advisor to the board and the office of the CEO, the company said. J. Crew did not respond to a Retail Dive request for further comment.
