Bridal retailer, David's, files for bankruptcy for a second time
David's Bridal, a well-known retailer of bridal apparel, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey. The move comes as a result of ongoing challenges such as store closures, significant layoffs, and financial strain.
The company, which operates in the U.S., Canada, and the U.K., has been attempting to broaden its customer base and adapt to changes in the bridal apparel market. These efforts included expanding ecommerce and integrating tech-driven retail models. However, these initiatives were not sufficient to offset declines in the niche bridal segment and the broader retail environment.
Key reasons for the bankruptcy filing include the closures of multiple store locations across several states, leading to a reduced physical footprint and layoffs of hundreds of employees. The company has also been struggling with declining foot traffic and changing consumer shopping habits, as seen in many brick-and-mortar retailers that face competition from online sales.
Despite previous restructuring attempts, including bankruptcies and efforts to lighten the asset base, David's Bridal has continued to face financial distress. The company has also experienced internal leadership changes, with a new CEO appointed to steer the turnaround.
In bankruptcy court documents, David's Bridal estimates its liabilities at between $100 million and $500 million. The filing does not affect the company's online operations at this time, and David's Bridal stores remain open and intend to operate as usual during the bankruptcy proceedings.
The company is laying off more than 9,200 employees, but it is evaluating its brick-and-mortar footprint as part of the bankruptcy process. David's Bridal has been implementing initiatives to broaden its customer base, including introducing an eight-piece wedding gown collection made partially from recycled fibers and launching a wedding-planning platform and marketplace.
David's Bridal has also been responding to more brides opting out of traditional wedding practices and consumers, particularly younger ones, struggling financially. The company has partnered with Little Tuxedos on children's formal attire and debuted its first Quinceañera collection.
David's Bridal acquired wedding site Rustic Wedding Chic in 2020 and has been seeking relief in Canada and the U.K. for its foreign operations. The company's CEO, James Marcum, has previously stated that the company is looking for a buyer.
The pandemic has disrupted David's Bridal's business, but the company has been trying to adapt, launching a "Little White Dress Boutique" for casual styles in response to the pandemic. The bankruptcy filing comes four years after the company emerged from its previous bankruptcy.
[1] Business Insider [2] CNN Business [3] The Wall Street Journal
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