David's Bridal files for bankruptcy, announces mass layoffs nationwide
There are five David's Bridal stores in Minnesota, including in Rochester and Duluth. All stores remain open for business.
DULUTH — David's Bridal, the largest American bridal-store chain, has filed for bankruptcy after announcing mass layoffs nationwide.
"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 release.
"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," he continued.
The Pennsylvania-based company filed for Chapter 11 bankruptcy protection with New Jersey Bankruptcy Court on April 17, just three days after filing a WARN Notice with the state of Pennsylvania stating it would lay off 9,236 employees total.
Corporate layoffs will occur in three phases: Phase 1 began April 14; Phase 2 is May 13-27; and Phase 3 is June 12 to Aug. 11. The distribution center layoffs are June 12-26. The field/store layoffs are June 12 and Aug. 11.
"We are pursuing a dual-track process inside of bankruptcy to sell our company. We hope to achieve a going concern sale and to preserve as many David’s jobs as possible," said Laura McKeever, senior manager of public relations and communications at David’s Bridal.
A "going concern sale" involves selling the business with everything necessary for the purchaser to continue operating it.
"Of course, no outcome is certain, but we want to assure the market and our employees that we are working as hard as we can to find a buyer to bring the iconic David’s brand into the future," McKeever said.
The company expects to file a recognition proceeding in Canada and a subsidiary of David's Bridal expects to commence an administration proceeding for its business in the United Kingdom, according to a release from David's Bridal.
Court documents indicate the corporation previously filed Chapter 11 bankruptcy for the District of Delaware on Nov. 19, 2018.
There are five David's Bridal stores in Minnesota, including Duluth, Richfield, Maple Grove, Oakdale and Rochester. All stores remain open for business, according to McKeever.
The company intends to fulfill orders without disruption or delay, and customers should not expect to see any change in service. Dresses are expected to arrive on time and bridal appointments will not be impacted, she added.
Additionally, the company's online platforms remain accessible, and the members of the shop's loyalty program can continue earning and redeeming rewards.
David's Bridal intends to continue honoring gift cards, returns and exchanges at this time, the release stated.