If you are in the US and you have attended a wedding or if you have had your own wedding then you must be aware of David’s Bridal because one report states that 25% of the US brides have worn a David’s Bridal gown to their wedding which means that the company has a huge presence in the country. Now, you must be sad to read that David’s Bridal has filed for Chapter 11 bankruptcy protection and it is also going to layoff more than 9000 of its employees in the next few months. Also, David’s Bridal has announced that they are looking to sell the company to an interested buyer very soon.
It is worth noting that David’s Bridal has a huge presence across the US region with hundreds of stores and e-commerce presence as well. The company has also announced that its stores and e-commerce portal will remain operational during the restructuring process inside the company. It is known, according to the court documents, that David’s Bridal currently has $257 million in debt which would be transferred to the new owner upon its sale.
David’s Bridal CEO James Marcum said “We have successfully modernized our marketing and customer interaction processes and driven our retail service levels to best in class,”. “Nonetheless, 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.” The company said in a statement that “We made the difficult decision to reduce our corporate workforce last week in line with market realities and our go-forward approach,”. “This reduction did not impact store employees.”
Its latest announcement, however, does affect store employees as well and it will be carried out between April and August this year. It is worth noting that before the pandemic, David’s Bridal filed for bankruptcy as well but the pandemic helped them survive due to its e-commerce business but soon after the pandemic, they have once again failed which means that its business needs a big shift and it is just not sustainable to run right now.
