Investment News 19-04-2023 10:27 10 Views

David’s Bridal files for bankruptcy after laying off more than 9,000 workers

Two days after it announced it was laying off 9,236 workers, David’s Bridal has filed for Chapter 11 bankruptcy protection and is looking for a buyer.

The company said in a news release Monday, its stores would remain open and operations would continue as normal while it looks to sell key assets.

In a statement, CEO James Marcum cited the uncertain economic conditions of the post-Covid environment as a driver of the company’s decision to seek ‘a buyer who can continue to operate our business going forward.’

Based in suburban Philadelphia, David’s Bridal also filed for bankruptcy in 2018.

Data from S&P Global Market Intelligence data shows corporate bankruptcies have begun to climb again; February’s 57 filings was the most in a single month since March 2021.

“Interest rates remain elevated with little reason to suspect they will decline meaningfully by year-end, adding to increased costs for firms,” Nick Kraemer, the head of ratings performance analytics at S&P Global Ratings, said in a report Feb. 16.

Other retailers heavily reliant on physical stores have signaled a weakening sales environment — including Best Buy, which said Friday it would lay off hundreds of store employees.

In a statement, Best Buy said it is “evolving our stores and the experiences we offer to better reflect the changes in customer shopping behavior, as well as how we organize our teams to ensure we continue to provide our expertise, products and services in the best way possible.”

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