David's Bridal Files for Bankruptcy, Looks for Buyer
David's Bridal filed for bankruptcy earlier this week just days after announcing plans to lay off more than 9,000 workers nationwide later this year. The popular wedding dress retailer said its stores and e-commerce website will remain open during the financial restructuring process. David's Bridal executives said they're trying to arrange a sale of the company. The Pennsylvania-based company, which filed for Chapter 11 bankruptcy protection, has $257 million in debt, according to court documents.
"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 company press release.
Total Retail's Take: David's Bridal was forced to withstand a challenging period during COVID, when so many weddings were cancelled as people avoided hosting large events. That put financial pressure on the business, yet led it to re-evaluate its marketing, merchandising, customer engagement processes and more to remain relevant in this new marketplace. However, those initiatives haven't been adopted quickly enough by consumers. More competition in the bridal market, including secondhand options; an overall shift to more casual wedding apparel; and an uncertain economy have ultimately been David Bridal's undoing. Without finding a buyer, David's Bridal appears headed to liquidation.