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Does David’s Bridal Have Irreconcilable Differences With Consumers?
David’s Bridal survived one bankruptcy. It’s not clear that it will be able to do so again.
The retailer, on Monday, filed for Chapter 11 bankruptcy protection. It previously went bankrupt in 2018.
David’s bankruptcy didn’t come as a surprise on the heels of reporting last week that the chain planned to lay off 9,236 workers across the U.S. The retailer employs somewhere between 10,000 and 11,000 people, according to reports.
The chain said it plans to keep its nearly 280 stores, website and Pearl by David’s wedding planning and vendor platform open for business and that it would fulfill “all customer orders without disruption or delay.” It also said it would honor all gift cards, returns and exchanges while sorting through bankruptcy.
David’s best bet for survival appears to be an outright sale of the company, which it said it began exploring before its Chapter 11 filing.
The retailer took a hit during the novel coronavirus pandemic as weddings were delayed due to restrictions placed on large gatherings to protect against the spread of COVID-19. Weddings picked up in 2021 and 2022 but remained below pre-pandemic levels. Demand for large formal gatherings has also ebbed post-pandemic with many couples opting for more intimate and casual affairs.
James Marcum, chief executive officer of David’s Bridal, said the retailer has made progress in transforming its business and can succeed with the proper resources.
“We have successfully modernized our marketing and customer interaction processes and driven our retail service levels to best in class,” he said.
Shopping for a wedding dress is a celebrated and often stressful experience chronicled sometimes even chronicled on reality TV. David’s has been criticized for failing to differentiate itself from competitors who offer superior in-store and online shopping experiences and services.
“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,” said Mr. Marcum.
Discussion Questions
DISCUSSION QUESTIONS: Why do you think David’s Bridal is in bankruptcy protection for the second time in less than five years? What would a new owner need to do to avoid a third trip to Chapter 11?
Poll
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Bob Phibbs
President/CEO, The Retail Doctor
Liza Amlani
Principal and Founder, Retail Strategy Group
Only insiders can know the answer for why the company is in bankruptcy for the second time but, regardless, this is likely the end of the road for the company. Any brand that goes through bankruptcy is damaged and while some can successfully recover, doing it twice is extremely difficult to come back from. This brand has been significantly damaged and, while I appreciate the sentiment of management wanting to carry on, this must be profoundly demoralizing for the staff who were let go–and for those who are staying also. This is an unfortunate outcome for a brand that led the category in the past.
David’s Bridal needs to rebrand and refocus on who their customer is and why they want to shop at David’s. Increasing brand relevance through a profitable and streamlined assortment mix and giving shoppers a reason to come back for all their formal needs is a must.
Reallocating staff, upskilling employees, taking more ownership of their product creation and merchandising strategy, and closing unprofitable stores is a step forward in avoiding another trip to Chapter 11. Perhaps a partnership with Love is Blind is in order to increase brand relevance.
I totally agree. David’s needs to understand today’s brides and adjust its branding and assortment accordingly.
How does a retailer fire 9,000 out of 10,000 to 11,000 employees and survive? If it can survive with that kind of cutback, how and why did it climb so high to begin with? That the pandemic hammered the business is totally understandable. But now the dots are not connecting.
It’s baffling to me. Twenty years ago the company had made arrangements with florists, printing companies and numerous others to create a wedding infrastructure that seemed to make perfect sense. I have to think that this approach should work again.
Twenty years ago, the company had made arrangements with florists, printing companies and numerous others to create a wedding infrastructure when David’s was a successful and well-thought-of company. We are a reflection of the friends we keep. If I am part of that wedding infrastructure, David’s is not the partner I want.
It seemed like they had a lot of PR around new initiatives but those tried to mask structural issues. I don’t think it is the bridal industry as much as losing touch with what consumers needed. Two times in bankruptcy begging for someone to buy them reminds me of Modell’s.
Yes, Bob. It is “hang on until we can take care of ourselves.”
It seems David’s has often been a part of discussions here. Just a few months ago, with much fanfare, we discussed partnerships to move the business forward from its very successful history. Management was already flailing and grabbing at straws. The CEO’s PR is always great.
I don’t think we have to discuss a third Chapter 11. When a company lays off 90 percent of its workforce, we are thinking of Chapter 7 in a few months. Management is simply holding on to get a reasonable price for the assets and maybe keep their jobs. (They will not.)
In the aftermath of the pandemic, the number of people getting married has spiked. However this hasn’t translated into success for David’s Bridal as brides continue to migrate to other retailers for their needs. This has been exacerbated by the cost of living crisis which has seen more people opt for smaller, less dressy weddings and to look at alternative channels like secondhand for their dresses. Unfortunately, David’s Bridal has a lot of costs to cover and current demand isn’t sufficient to cover those costs.
Agree with you Neil, that alternatives to owning as well as the push for sustainability have shifted mindsets from the selection of the perfect gown to live the rest of it’s life in storage is not the lure that it once was. Growing any business from a once in a lifetime need (ok, maybe 2 or 3) is an uphill battle once the market share is maxed out.
I went through the David’s Bridal “choosing a wedding dress” experience in 2021 with my new daughter-in-law. The store we visited was dated and the experience felt sort of mass-produced. Brides and their families were in bullpen areas, almost on top on one another. It wasn’t what I anticipated it would be.
In direct contrast, I visited a Vow’d Weddings store recently and the experience was wonderful. Gorgeous store design, top drawer customer service, private areas for families, fair prices, and an amazing assortment of dresses to try on in all sizes that you can get in weeks instead of months. Even the bathroom was unexpectedly cool.
Buying a wedding dress is an anticipated milestone. Vow’d treats it as such, David’s does not. And that’s part of its ongoing problem.
This is a business segment best left for small, local, independent shops.
Not a garden variety mass retail type of chain.
This was a profitable business unit for May and at the time I was confused why Macy’s didn’t want it. Excellent decision by Macy’s to not take this.
How do you layoff ~90+% of your workforce and yet “plan to keep…open”??
This would seem to be the ultimate example of a niche business – and one with limited potential for repeat business – so it’s particularly sensitive to even small shifts in behavior. I’ll wish them well, but…