David’s Bridal, a leading wedding dress retailer, has filed for bankruptcy for the second time in the past five years.
The company announced in a Monday press release that it filed for Chapter 11 bankruptcy protection, the Associated Press reported. The company has said for now, stores will remain open and orders will continue to be processed like normal.
David’s Bridal said it was evaluating options to sell the company prior to bankruptcy, according to the outlet. In 2018, the company filed for bankruptcy protection but reemerged a year later.
James Marcum, Chief Executive Officer of David’s Bridal, said the company successfully modernized in the last several years but has been hurt by the post-pandemic economy. “Our business continues to be challenged by the post-COVID environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward,” Marcum said, MarketWatch reported.
David’s Bridal filed for Chapter 11 bankruptcy Monday for the second time in less than five years https://t.co/dfdRgIL7Rp
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The company said last week it was laying off 9,000 of its over 10,000 full and part-time employees, according to CNN. David’s Bridal will keep its nearly 300 stores and website operating as it searches for a buyer, but if the company can’t sell, it will be forced to close all store locations and liquidate.
The company said one in four brides wear David’s Bridal to their wedding, but societal shifts are also to blame for a changing bridal industry. Weddings have still not bounced back from pre-pandemic levels, reflecting a steady decline in marriage rates since the 1980s, the outlet reported. (RELATED: US Marriage Rate Drops To Lowest Level On Record In Over 150 Years)
“The demand for formal wedding dresses, bridesmaid dresses, and related accessories has decreased substantially in the current environment,” David’s Bridal said in its bankruptcy filing, CNN reported. For now, the company intends to continue honoring gift cards, returns, and exchanges.
“We are grateful to the seven decades of brides and customers who have trusted us with the most special events of their lives,” Marcum said in the release.