Many retailers in Mississippi and beyond have encountered financial challenges in recent years. For some, minor money problems have escalated into full-blown financial crises. One such company, popular among brides-to-be throughout the country, is David’s Bridal. The business recently announced that it is filing for bankruptcy.
In addition to implementing a debt relief solution by filing for bankruptcy, David’s Bridal says that its stores will be laying off more than 9,000 employees across the country. Analysts have cited an unstable economy, supply chain issues and a projected decrease in the number of weddings as key reasons that caused David’s Bridal to take extra measures to stay afloat.
People are buying wedding gowns on consignment these days
Another relevant issue that may be affecting stores like David’s Bridal is that many brides today are buying their wedding dresses on consignment. One customer said that she loves the idea of knowing that by purchasing a second-hand wedding gown on consignment, the previous bride will enjoy a profit. Rising trends like shopping in second-hand stores for wedding gowns may be taking a toll on heretofore popular establishments like David’s Bridal.
How does bankruptcy help a business avoid closing?
There are different types of bankruptcy. A business owner in need of debt relief must first determine which program best fits the company’s needs. Filing for bankruptcy sometimes enables a company to restructure its payment plans so that creditors are still being paid while the business continues to function and remains open to the public. To determine which debt relief plan best fits a particular set of circumstances, it’s helpful to schedule a meeting with an experienced bankruptcy law attorney.