David's Bridal files for Chapter 11 bankruptcy
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Management
After a week of speculation that David’s Bridal was on the brink of bankruptcy, America’s largest bridal retailer announced its declaration in the midst of bridal season on Monday, April 17.
With recent mass layoffs of over 9,236 employees and an official press release statement, David’s Bridal’s Chapter 11 filing status is already in full swing. After previously filing for bankruptcy in 2018, CEO James Marcum stated that the “business continues to be challenged.”
It is the second time the company has filed for bankruptcy in five years.
Marcum cited the main driving factor as the post-pandemic economic climate, as the U.S. has seen a rise in corporate bankruptcies in 2023 alone, according to data from S&P Global Market Intelligence.
He said: “Over the last several years, we have taken meaningful strides in our transformation to fulfill the needs of the brides of today and tomorrow. We have successfully modernized our marketing and customer interaction processes and driven our retail service levels to best in class.
Covid impact
“Nonetheless, 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. We are determined to stay focused on our future, because we believe we have an important role in ensuring that every bride, no matter her budget, can have her perfect dress.”
“We are grateful to the seven decades of brides and customers who have trusted us with the most special events of their lives, as well as to the dedicated associates and valued partners who make our customers' dreams come true. We remain as committed as ever to providing excellent service, delivering for our brides and customers, and being part of magical moments.”
The Philadelphia-based company now sets its sights on a new buyer to carry it forward in the future. In the meantime, David’s Bridal stores will remain open and the company assured delay-free fulfilments of all ongoing and upcoming orders.