David’s Bridal, the biggest wedding retailer in the nation — with locations in Massachusetts — recently determined that it needed to address its subpar financial situation. It therefore decided to file for Chapter 11 bankruptcy. However, the company does plan to remain in business.
David’s Bridal currently has debt totaling several hundred million dollars stemming from a buyout many years ago. In addition, it is facing stiff digital competition. These are both factors in the company’s decision to seek bankruptcy protection.
Another bridal shop that filed for bankruptcy in 2017, Alfred Angelo, ended up leaving grooms and brides high and dry as a result of its sudden liquidation. However, officials with David’s Bridal assured its customers that the bankruptcy filing would not interfere with their weddings. This is partly because the company was able to secure support from major lenders to remain afloat. The current plan is for the company to keep operating 300+ stores along with its website.
Sometimes, companies in Massachusetts, both large and small, run into major financial problems due to accruing more liabilities than assets. Fortunately, they do not have to remain in their financial holes. Instead, they can file for Chapter 11 bankruptcy, which essentially gives a struggling business the second financial chance it desperately needs. Of course, figuring out how to go about the bankruptcy filing process can be complex and overwhelming. However, an attorney can guide business owners through the filing process so that they can get on the path to financial health as soon as possible.