We have recently seen that a lot of legacy brands have been closing shops, filing for bankruptcy or even taking the decision to sell the company altogether because of the fact that their business is no longer sustainable in the current economic situation and they do not want to incur any more losses. Now, the latest brand to join the list of companies that has decided to sell off is David’s Bridal. For those who are not aware of the brand, it is a bridal wear manufacturing brand that has its presence both offline as well as online via its e-commerce store.
It is interesting to note that the bridal season in the US kicks off in just a few weeks from now but despite that, the company has announced that they will sell the company as well as layoff all of its employees in the US which are close to 9000 as per an estimate. You must also note that David’s Bridal had already filed for bankruptcy protection four years back. David’s Bridal currently has 300 stores in the US and the company said that “We are evaluating our strategic options and a sale process is underway,” and added that “At this time, there are no updates to share, and all stores are open to serve customers. Providing excellent service remains our focus and we are committed to serving and delivering for our brides and customers and being part of magical moments.”
New York Times reported last week that David’s Bridal was looking to file for bankruptcy as soon as this week which would have been the second time that the company would have filed for bankruptcy. The company filed it the first time when they had accumulated $400 million in debt right before the pandemic. However, it looks like the company did well during the pandemic and somehow managed to be in business for a few years after that. Now, it seems like the demand would have gone away once again as bridalwear is still something that people prefer to shop offline rather than online. David’s Bridal is expected to fully close its stores in the US by August this year.
