David's Bridal, one of the nation's largest wedding gown retailers, is filing for bankruptcy as it comes to terms with changing consumer tastes in the wedding industry and a heavy debt load.
The move comes just days after the company announced it would lay off more than 9,200 employees across the nation -- roughly 80% of its workforce. The job cuts have already begun and are set to finish in August.
The Pennsylvania-based chain said Monday that its stores -- nearly 300 nationwide -- will currently remain open to fulfill orders without delay as the company looks to sell all or some of its assets.
"Delivering every order on time remains our singular focus, and we plan to continue to do so at the highest levels throughout this process," David's Bridal said on a website dedicated to its restructuring. "Our stores are open, and our Dream Makers are ready to help you prepare for your big event. Our alterations department is available to serve as usual."
Its online platforms will also remain available for brides to shop for gowns and to help with customers' wedding planning needs.
The company said it also intends to continue honoring gift cards, returns and exchanges at this time.
Despite one in four brides wearing a David's Bridal gown at their wedding, the company says the industry as whole has not yet recovered from hardships caused by the COVID-19 pandemic.
"Only 1.9 million weddings [occurred] last year as compared to the more than 2.2 million weddings that occurred annually in the years leading up to the pandemic," the company said in court documents. "Brides still find it challenging to secure their ideal wedding venue, resulting in couples elongating their wedding planning cycles and brides delaying their timing for selecting a dress."
That compiled with inflation and other economic pressures has also caused a shift in buying habits.
"An increasing number of brides are opting for less traditional wedding attire, including thrift wedding dresses. Thus, the demand for formal wedding dresses, bridesmaid dresses, and related accessories has decreased substantially," the company said.
The retailer tried to avoid filing for bankruptcy, saying it "initiated an evaluation of a wide range of strategic alternatives to maximize value for all stakeholders, including a marketing and sale process for its assets." However, the company was "unable to finalize its marketing and sale process out of court and intends to continue exploring a sale of all or some of its assets."
"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," CEO James Marcum said in a statement.
While it's not clear if the bankruptcy status will lead to any store closures in the coming months, the company said it is "strategically managing inventory and evaluating its physical footprint to maximize value and the prospect of a successful going concern transaction."
"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," Marcum said. "We remain as committed as ever to providing excellent service, delivering for our brides and customers, and being part of magical moments."
This is the retailer's second bankruptcy in five years. It also filed for Chapter 11 bankruptcy protection in 2018, after continuing to struggle with its debt and the declining sales of wedding dresses, but was able to recover and emerged from bankruptcy the next year.
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