David’s Bridal, one of the largest providers of wedding gowns and formal wear, is declaring bankruptcy for the second time in five years. It is also laying off nearly 10,000 employees nationwide and putting the company up for sale.
But the company went out of its way to assure brides planning their wedding that their orders are safe. The company said its stores will remain open and it plans to fulfill “all customer orders without disruption or delay.”
David’s Bridal online platforms, including its Pearl platform and vendor marketplace, remain available and accessible to brides for their wedding planning needs, company executives said. Loyalty rewards members can continue earning and redeeming rewards and the company said it will also continue honoring gift cards as it seeks a buyer for the chain.
James Marcum, David's Bridal CEO, said the company was severely impacted by the COVID-19 pandemic and it has struggled to recover.
“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,” Marcum said. “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."
Growing budget problems
Before the bankruptcy announcement, David’s Bridal began an evaluation of a wide range of strategic alternatives to maximize value for all stakeholders, including a marketing and sale process for its assets. In light of its liquidity constraints, the company said 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 pursuant to section 363 of the Bankruptcy Code.
"We are grateful to the seven decades of brides and customers who have trusted us with the most special events of their lives, as well as to the dedicated associates and valued partners who make our customers' dreams come true,” Marcum said. “We remain as committed as ever to providing excellent service, delivering for our brides and customers, and being part of magical moments."