David’s Bridal, one of the largest retailers of wedding dresses, has filed for bankruptcy.
The Pennsylvania-based company announced Monday morning it had filed for Chapter 11 protection in U.S. Bankruptcy Court in New Jersey. In its filing, David's Bridal said it will continue a sale process for the company.
They also expect to file a recognition proceeding in Canada and a subsidiary of David's Bridal expects to commence an administration proceeding for its business in the United Kingdom.
The move comes just days after David's Bridal announced plans to cut at least 9,000 jobs across the U.S. as the 70-year-old company continued to struggle after emerging from bankruptcy five years ago.
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In a statement, David's Bridal CEO James Marcum said that while the company has taken strides to transform the business, it continues to face lingering challenges from the COVID-19 pandemic.
"Over the last several years, we have taken meaningful strides in our transformation to fulfill the needs of the brides of today and tomorrow," Marcum said. "We have successfully modernized our marketing and customer interaction processes and driven our retail service levels to best in class. 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."
On its website, David's Bridal assured customers that stores will remain open and continue to accept and fill orders just as the busy wedding and prom seasons are gearing up. It also said store credits will continue to be honored, gift cards are still being accepted and customers can continue to submit returns and exchanges for dresses "in accordance with existing policies." Additional information on frequently asked questions can be found here.
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The New York Times reports the bridal company has been in talks with the investment bank Houlihan Lokey as it explores buyers for the dwindling business.
The company has about 300 stores across in the U.S.
In November 2018, David's Bridal filed for bankruptcy which wiped out more than $400 million in long-term debt. It emerged from bankruptcy three months later with a revamped marketing plan targeting millennial brides.
