David's Bridal, the largest wedding dress retailer in North America, files for bankruptcy protection!

According to foreign media reports, David's Bridal, the largest wedding dress retailer in North America, filed for bankruptcy protection on Monday. A few days ago, the company announced plans to lay off more than 9,000 employees across the United States later this year.

David's Bridal said its stores and e-commerce website will continue to operate during its financial restructuring. The Pennsylvania-based company has $257 million in debt, according to court documents.

"We have successfully modernized our marketing and customer engagement processes and elevated our retail service to a best-in-class level," David's Bridal CEO James Marcum said in a statement. "Nonetheless, David's Bridal remains challenged by the post-pandemic and uncertain economic conditions, which prompted us to seek the right buyer to continue operating our business."

David's Bridal, founded in 1950, has 294 stores in the United States, Canada and the United Kingdom, mainly selling wedding dresses and prom dresses. In court documents, the company said that about a quarter of American brides buy wedding dresses from it, and nearly 90% of brides visit its website at least once during wedding preparations.

David's Bridal, which had about 10,000 employees as of April, including 2,000 full-time and 8,000 part-time, plans to lay off 9,236 employees in three waves between April and August, according to a notice released by the Pennsylvania Department of Labor on Friday. On Monday, David's Bridal said in a statement that some layoffs have already begun.

David's Bridal said it would "fulfill all customer orders without disruption or delay" but could be forced to wind down operations if it could not find a buyer.

David's Bridal has been affected by a range of factors, including inflation and competition from online and second-hand retailers. The shift towards more casual wedding styles has also made David's Bridal's elaborate gowns less attractive to some brides. "More brides are choosing less traditional wedding attire, including thrifted wedding gowns," David's Bridal noted.

The company's financial woes were also exacerbated by a dramatic shift in consumer preferences: "In the current environment, demand for formal wedding dresses, bridesmaids' dresses and related accessories has declined significantly," the company said in its filing.

It is worth noting that this is not the first time the company has filed for bankruptcy protection. Back in 2018, David's Bridal filed for bankruptcy, citing a decline in demand for wedding dresses, inflation and losses in its business in recent years.

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