NEW YORK (CNN) There has been a rebound in weddings in the last two years after the worst of the Covid-19 pandemic. But for David’s Bridal, the largest bridal retailer in the United States, it wasn’t enough. The company said Monday it had filed for Chapter 11 bankruptcy.
David’s Bridal has been impacted by a number of factors, including inflation and competition from online retailers and second-hand retailers. A shift towards more casual weddings has also made David’s Bridal’s lavish dresses and gowns less appealing to some brides.
“More and more brides are choosing less traditional wedding wear, including second-hand wedding dresses,” David’s Bridal said in a bankruptcy filing. “These changing consumer preferences have significantly exacerbated the company’s financial crisis.”
David’s Bridal has also been impacted by changes in the way women shop for wedding dresses.
“Demand for formal wedding dresses, bridesmaid dresses and related accessories has declined significantly in the current environment,” the company said in its filing.
Despite the rebound in weddings in 2021 and 2022, they are still below pre-pandemic levels, according to CDC data. And fewer people are getting married in the long run: Marriage rates in the United States have been declining since the early 1980s, according to the agency.
David’s Bridal will keep its nearly 300 stores and website operational and fulfill all customer orders while it searches for a buyer for the business. Gift cards, returns and exchanges are also taken into account. But if David’s Bridal can’t find a buyer, all stores may have to be closed and liquidated.
The company has around 10,000 full- and part-time employees but announced last week it was laying off 9,000 employees.
David’s Bridal, the successor to a bridal retail business operating as a single bridal salon in Ft. Lauderdale, Florida said in 1950 that approximately 25% of brides in the United States wear one of their dresses at their wedding.
This is the retailer’s second bankruptcy in five years.
David’s Bridal said it has made progress since restructuring its business during its previous bankruptcy, but is “suffering from severe liquidity constraints”.
“Our business continues to be challenged by the post-Covid environment and uncertain economic conditions, prompting us to take this step to find a buyer who can continue our business going forward,” said James Marcum, CEO from David’s Bridal, in a statement.
Retail bankruptcies are piling up as interest rates rise and discretionary spending eases.
Party City, Tuesday morning, mattress maker Serta Simmons and Independent Pet Partners, a pet supply retailer, have filed for bankruptcy in recent weeks.
Bed Bath & Beyond is also under bankruptcy control, closing hundreds of stores.