David's Bridal, the largest bridal-store chain in the US, on Monday filed for bankruptcy, seeking to find a buyer for its business because of a worse business situation due to the impact of covid-19 pandemic and high inflation.
It said in a statement that it would fulfil all customer orders without disruption or delay," but might be forced to wind down its operations if it cannot find a buyer.
The company, which previously went bankrupt in 2018, said its business has suffered in recent years due to the Covid-19 pandemic, decreased demand for wedding dresses and high inflation.
"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," CEO James Marcum said in a statement.
The privately owned company on Friday sent notices under the WARN Act, a federal law that requires businesses with 100 or more employees to provide 60 days' notice before engaging in mass layoffs, saying it intended to lay off more than 9,000 employees by August.
The company has $256.9 million in debt, and it has engaged a consultant to coordinate store closing sales if necessary.
The company's previous bankruptcy allowed it to cut $434 million in debt, but the pandemic and temporary bans on in-person events began to hurt the company nearly as soon as it emerged from Chapter 11, according to court documents.
According to the company, the marriage rate decline is the main cause of a decrease in its sales volume. There were about 1.7 million marriages in the US in 2020, the lowest level in 121 years, after several years of more than 2 million marriages annually.
Longer-term declines in marriage rates meant that weddings have been slow to rebound, with 1.9 million marriages in 2022, compared to a 2.2 million average marriage rate for the three years before the pandemic.
David's Bridal is a clothier in the United States that specializes in wedding dresses, prom gowns, and other formal wear. It currently operates 298 stores in 49 states, Canada, and the United Kingdom.
It is the successor to a bridal retailing business that began as a single bridal salon in Ft Lauderdale, Florida, in 1950, said approximately 25 per cent of brides in the United States wear one of its gowns at their wedding.
