David’s Bridal files for bankruptcy protection

David’s Bridal, North America’s largest retailer of wedding dresses, filed for protection from creditors in the US and Canada on Monday.

David’s Bridal said in a statement that it will “fulfill all customer orders without disruption or delay,” but may be forced to cease operations if it cannot find a buyer for its business.

The Pennsylvania-based company filed for protection from creditors under Chapter 11 of the US bankruptcy code.

Court documents show the company is seeking similar measures under the Corporate Creditors Arrangement Act for its Canadian operations, which include 12 stores across Canada.

“The company expects to file for recognition proceedings in Canada and a subsidiary of David’s Bridal expects to begin administrative proceedings for its business in the United Kingdom,” the company said in a press release.

This is the second time David’s Bridal has filed for bankruptcy since 2018, as the company says its business has suffered in recent years due to the COVID-19 pandemic, reduced demand for wedding dresses and high inflation.

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“We are determined to remain focused on our future, because we believe we have an important role to ensure that every bride, regardless of budget, can have the perfect dress,” CEO James Marcum said in a statement.

David’s Bridal has 294 stores in the U.S. and Canada and eight franchise locations in Mexico, offering wedding dresses starting at $199 US.

Layoffs are coming

The privately held company on Friday submitted notice under the WARN Act, a federal law that requires businesses with 100 or more employees to give 60 days’ notice before implementing mass layoffs, saying it plans to lay off more than 9,000 workers in August.

About 25 percent of brides in the U.S. wear a David’s Bridal gown at their wedding, and David’s Bridal has worn 70 million brides in its 70-year history, according to the company’s court filing.

The company has $256.9 million in debt, and has engaged consultants to coordinate store closing sales if necessary.

While liquidation sales may be underway, the company is telling customers that it’s business as usual. “Our store is open, and we intend to fulfill orders without interruption or delay,” the FAQ document for weddings read.