National bridal retailer, David’s Bridal, filed for reorganization under Chapter 11 bankruptcy laws on Monday, citing poor retail sale and other woes.
The blow comes just days after the bridal chain announced it would lay off more than 9,000 workers.
The company filed for Chapter 11 reorganization in 2018 after being swamped om $400 million in debt.
However, in January 2019, it exited its reorganization.
“An increasing number of brides are opting for less traditional wedding attire, including thrift wedding dresses,” David’s Bridal said in a filing.
“The demand for formal wedding dresses, bridesmaid dresses, and related accessories has decreased substantially in the current environment,” the filing said.
“David’s Bridal stores remain open, and the Company intends to continue operating in the ordinary course, including by fulfilling all customer orders without disruption or delay,” the company said in a statement following the bankruptcy news.
“Additionally, the Company’s online platforms, including its Pearl platform and vendor marketplace, remain available and accessible to brides for their wedding planning needs,.”
According to the statement, the company had been searching for alternatives. Still, it 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.
According to the company’s Chapter 11 filing, it’s in $257 million in debt.
As CNN notes, the retail sector bankruptcies are soaring under Joe Biden, citing filings by Party City and manufacturer Serta Simmons.
David’s Bridal has been selling wedding dresses and formal gowns since the 1950s, with 294 stores in the U.S., Canada, and the U.K.
At its height, David’s Bridal claimed one in four U.S. brides purchased their wedding gowns from the company.
According to a Worker Adjustment and Retraining Notification notice, the company also announced it was laying off 9,236 workers.
“We made the difficult decision to reduce our corporate workforce last week in line with market realities and our go-forward approach,” David’s Bridal said, according to CBS. “This reduction did not impact store employees.”
Neil Saunders, managing director at GlobalData Retail, said while weddings have increased post-pandemic, “this hasn’t translated into success for David’s Bridal as brides continue to migrate to other retailers for their needs.”