Last month, bridal retailer Alfred Angelo filed for bankruptcy protection. In the days following the filing, the company went through efforts to obtain customer records and to deliver dresses and accessories across the country, but a recent statement indicates that they will no longer be fulfilling orders. In short? If you don’t have your dress yet, you should start looking elsewhere, if you haven’t already. This is, according to the statement, due to the logistical and financial strain of continuing to fulfill open orders.
The statement was the first public statement from Alfred Angelo since the stores abruptly closed down at the end of the day July 13. At the time, employees had no idea what was about to happen. Managers were instructed to return keys after close and customers were unable to reach the phone’s customer service line.
If you are affected by the closing, you may still have options. Many other companies are now offering special deals to brides and wedding parties who have had their orders left unfulfilled by Alfred Angelo.
Why Did Alfred Angelo File for Chapter 7 Bankruptcy?
Alfred Angelo filed for Chapter 7 bankruptcy, meaning it chose to liquidate rather than restructure its debt. In the filing, the company revealed that it had no more than $50,000 of assets. However, it had over $50 million in debt. The company has been operating since the 1930s.
Many of the debts that drive business owners to file for bankruptcy can be discharged through Chapter 7. This means that the company will no longer be responsible for paying the debts once the bankruptcy case finalized.
This form of bankruptcy is less common among business entities than Chapter 11 bankruptcy. This is because, once a Chapter 7 bankruptcy is finalized, the company must dissolve. Businesses that wish to continue operating after restructuring debts will usually file for a Chapter 11 instead.