Most people who have either married, planned to marry or even simply attended a wedding in North America have likely heard of David's Bridal.
The wedding and bridal party clothing company has been around since the 1950s and, in no small part due to its plethora of affordable options, at one point claimed to be the company of choice for every third bride in the U.S.
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Signs of trouble first started to emerge amid whispers that the Conshohocken, Pa.-based company was planning layoffs.
David's Bridal sent notices on April 15 informing state departments of a job cut round that could affect over 9,000 positions across 300 of its stores across the country.
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David Bridal's Layoffs Preceded Bankruptcy Filing
After looking for and failing to find a buyer over the weekend, the bridal clothing company said that it was filing for Chapter 11 bankruptcy protection and related recognition proceedings for its businesses in Canada and the United Kingdom on April 17.
Blaming its dour financial outlook on the post-pandemic landscape and "shifting consumer preferences," David's Bridal said that it will remain open as it continues its search for "a buyer who can continue to operate our business going forward."
"We have successfully modernized our marketing and customer interaction processes and driven our retail service levels to best in class," David's Bridal CEO James Marcum said in a statement. "Nonetheless, our business continues to be challenged by the post-COVID environment and uncertain economic conditions."
David's Bridal had already filed for bankruptcy protection once before in 2018 after amassing more than $430 million in long-term debt. It was able to emerge from the bankruptcy after getting acquired by a group of lenders including Oak Tree Capital Group.
But with the pandemic following soon after, the drop in weddings served another blow to the bridal clothing company. While many in the industry were hoping for a "wedding boon" after the lifting of covid-related restrictions, any increase was offset by the high cost of hosting one amid inflation.
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While up 18% since 2020, the number of weddings in the U.S. is still below pre-pandemic levels. One survey conducted by financial services company Bankrate found that even being a wedding guest costs the average person $611 while 21% of those surveyed felt pressure to spend what they couldn't necessarily afford.
As a result, many guests and hosts alike are choosing to skip or significantly downscale the wedding for financial reasons.
"An increasing number of brides are opting for less traditional wedding attire, including thrift wedding dresses," David’s Bridal says in its bankruptcy filing first obtained by CNN. "[...] The demand for formal wedding dresses, bridesmaid dresses, and related accessories has decreased substantially in the current environment."
David's Bridal reaffirmed that its stores will remain open and it will continue fulfilling online orders as it looks for a buyer and sees if it can emerge out of the current situation once again.
The announced layoffs immediately affected corporate positions and will extend toward in-store stylists in rounds coming in May and August.
"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.
