Days after it announced that it was laying off more than 9,000 of its 11,000 employees, David’s Bridal has filed for Chapter 11 bankruptcy.
The wedding dress retailer said that inflation, a shift in trends, as well as competition from online retailers and secondhand stores, have cut into its business, CNN reported.
“An increasing number of brides are opting for less traditional wedding attire, including thrift wedding dresses,” David’s Bridal said in Monday’s filing, according to CNN. “These shifting consumer preferences have significantly exacerbated” hurt the company’s bottom line.
This is the second time in five years that David’s Bridal has filed for bankruptcy protection, CNBC reported. The last time was 2018 and the company emerged from protection in 2019.
This time, however, David’s Bridal is looking to sell to another company, but pledged to keep the almost 300 stores and websites in operation during the process, CNN reported.
“David’s Bridal stores remain open, and the Company intends to continue operating in the ordinary course, including by fulfilling all customer orders without disruption or delay. Additionally, the Company’s online platforms, including its Pearl platform and vendor marketplace, remain available and accessible to brides for their wedding planning needs. Further, members of Diamond, the Company’s industry-leading loyalty program, can continue to derive value by earning and redeeming rewards, and the Company intends to continue honoring gift cards, returns, and exchanges at this time,” the company said in a news release announcing the filing.
If a sale is not successful, the Pennsylvania-based company may have to close all stores and liquidate its holdings, CNN reported.