AN ICONIC bridal chain has filed for bankruptcy following a designer dispute and the long-term impact of the Covid-19 pandemic.
On Monday, JLM Couture Inc. filed for Chapter 11 bankruptcy protection in Delaware.
The bridal dressmaker which led the wedding gown industry for 30 years declared over $2.1million in liabilities.
In the filing, it also listed between $1million and $10million in assets.
Under the company's restructuring plan, it will significantly scale back its business and safeguard its assets in order to continue operations.
A company spokesperson said that the plan is "the most strategic move to protect our valued operations and assets."
read more on bankruptcy
As the design company undergoes this process, its operations will continue as normal.
JLM said in a statement: "The primary motivators for this decision stems from external challenges including the actions of Hayley Paige Gutman and pressure from legacy creditors, including potential liability stemming from New York City landlord-tenant issues aggravated by the pandemic."
The bridal company and its former designer first came to blows in December 2020 over Gutman's use of the company's social media accounts.
As a result, Gutman was given a temporary restraining order preventing her from posting on the accounts without JLM's approval.
Most read in Money
Gutman then resigned from her post at JLM and launched her own social media accounts before taking on the role of Creative Director at She Is Cheval.
The U.S. Sun reached out to Gutman for comment and received the following statement from her representatives:
"JLM Couture initiated and sustained their litigation on a universally admired bridal designer to prevent her from using her given birth name in any business... or even to publicly identify herself."
It added: "To claim that the designer (who is legally unable to use her own name even in this response) is responsible for JLM’s demise is another example of the lack of accountability and pattern of disrespect."
Meanwhile, David's Bridal was forced to file for bankruptcy for the second time in five years but its CEO is confident about the company's comeback.
CEO Jim Marcum told Business Insider that the company will continue to be popular despite watching their budgets as David's caters for a wide range of brides.
"The uniqueness about David's is we have dresses in the $199 price point, and we've got dresses at $2,000. We also have a broad range of aesthetics," he said
In addition to this, they have also launched Pearl which the CEO believes is the company's secret weapon.
Read More on The US Sun
Marcum explained: "So now we have wedding-planning checklists and vision boards that allow you to curate the style of your wedding.
"We have the registry, and now we have the vendor marketplace."
ncG1vNJzZmivp6x7tbTEZqqupl6YvK57zKilnrFfbn91gpZrb2ilkZ%2B8s3nBq6CdmZxiwLW70Z5ko6SdYrCwwdOuqZ5lp5qxpbXNoGSfoZyawG6uwKeiq62gqbC6ew%3D%3D