The popular wedding dress retailer, David’s Bridal, has filed for bankruptcy, according to CNN.
Covid-19 resulted in a drastic hit for many nuptial-reliant businesses; however, in the past three years, weddings have made a major comeback. But for the world’s largest wedding dress retailer, David’s Bridal, it’s just not enough. Earlier this week, the company announced that they have filed for
Chapter 11 bankruptcy. “An increasing number of brides are opting for less traditional wedding attire, including thrift wedding dresses,” David’s Bridal said in their bankruptcy filing. “These shifting consumer preferences have significantly exacerbated” the company’s financial issues.A change in how women shop for their wedding dresses has also had a major impact on companies like David’s Bridal.
“The demand for formal wedding dresses,
bridesmaid dresses, and related accessories has decreased substantially in the current environment,” the company said. Though weddings have started happening again; according to CDC data, the numbers are still not reflective of what they were pre-pandemic. The stress of wedding planning combined with changing financial times is causing many couples to search for alternative avenues to celebrate their commitment to one another.The retailer plans to keep their 300 stores open as well as fulfill all existing orders as they search for a buyer. There is also a promise to honor all gift cards, returns and exchanges; however, if David’s Bridal is unable to find a buyer, they will be forced to close all of their locations. At the time of the news, the company employed around 10,000 full and part-time workers. Last week, they reported that they would be laying off 9,000, according to CNN.
“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,” said David’s Bridal CEO James Marcum in a statement.