Fargo, North Dakota – David’s Bridal filed for Chapter 11 bankruptcy and is seeking a buyer two days after announcing that company will be laying off 9,236 employees.
The company stated in a news release on Monday that while it tries to sell essential assets, its stores will stay open and business would go as usual.
The company decided to look for “a buyer who can continue to operate our business going forward” as a result of the uncertain economic climate in the post-COVID scenario, according to a statement from CEO James Marcum.
David’s Bridal, a Philadelphia suburb-based company, also declared bankruptcy in 2018.
Corporate bankruptcies have started to increase once more, according to data from S&P Global Market Intelligence; February’s total of 57 filings was the highest monthly total 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, head of ratings performance analytics at S&P Global Ratings, said in a Feb. 16 report.
Other businesses with a strong physical presence have hinted to a deteriorating sales climate, notably Best Buy, which said on Friday that it would be firing hundreds of shop staff.
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.”
