Missouri Bridal Store Chain Files Bankruptcy, Brides Left In A Lurch?
A popular bridal store chain in Missouri and Illinois has filed for bankruptcy. How will the bankruptcy impact brides' wedding dress orders?
David's Bridal Stores, one of America's largest bridal store chains filed for bankruptcy protection yesterday citing the post-COVID-19 environment and the current economic environment for the bankruptcy filing. In a press release, the store's Chief Executive Officer James Marcum said:
"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. We are determined to stay focused on our future, because we believe we have an important role in ensuring that every bride, no matter her budget, can have her perfect dress."
Essentially, David's Bridal has entered bankruptcy protection because they had some cash problems that made it difficult to market and sell the chain without court supervision. Which seems to be what their leadership thinks will provide a maximum return to their stakeholders.
In addition to trying to sell the chain and its assets through bankruptcy, the chain also plans to manage its inventory and make sure its number of store locations is right-sized to maximize the chain's value and chances for success in the future.
All this is great, but if you're a bride or a groom, you probably don't care if stakeholder value is maximized, you care about what's going on with that wedding dress you ordered. Or you are concerned about whether or not that dress you like that they have, is one that you should buy.
According to the store's press release the chain has every intention of fulfilling all customers' orders on time and with no delays. Additionally, the chain says its digital platforms will remain online and accessible to all couples for their wedding planning needs. Additionally, the store plans on honoring gift cards, returns, and exchanges -- at least for the time being.
David's Bridal has twelve stores throughout Illinois including seven in the Chicagoland area as well as Champaign, Peoria, Rockford, and Springfield. In Missouri, David's Bridal has six stores, two in the St. Louis area, two in the Kansas City area, one in Springfield, and one in Columbia. Additionally, they have a pop-up prom store in Country Club Plaza.