David's Bridal filed for Chapter 11 bankruptcy Monday. The retailer, which boasts that it sells 1 out of 3 wedding dresses in the United States said it intends to "continue exploring a sale or all of its assets."
During the process, the company plans to keep all of its approximately 300 stores open. However, it will evaluate its existing store base. The company also stated that it would honor customers' orders. This is especially important for a retailer who has to meet the deadlines of wedding days.
David's Bridal is filing for bankruptcy protection for the second time within five years. The retailer announced on Monday that it wanted to be able to pay its employees and maintain its programs, as well as honor its obligations to vendors.
James Marcum said that David's Bridal was modernizing its business after its first bankruptcy, in 2018. The wedding boom of 2022 was the largest in 40 years, with nearly 2.5 million weddings. But the pandemic affected the way people dress for these events. This has caused David's to suffer.
The retailer has engaged the law firms Kirkland & Ellis, Cole Schotz and Houlihan Lokey as well as the investment bank Houlihan Lokey to help with a potential sale.
Marcum stated in a press release that "our business is still challenged by the post Covid environment and uncertain economy conditions. This has led us to this step of identifying a buyer to continue operating our business moving forward." "We're determined to focus on the future because we think we can play a significant role in making sure that every bride has her dream dress, regardless of her budget."
David's Bridal began cutting thousands of jobs before the bankruptcy was filed. According to an announcement filed by the retailer to the Pennsylvania Department of Labor in August, it said that it would lay off 9,236 workers nationwide.