Customers concerned as beloved wedding designer files for bankruptcy but company tries to reassure n
CUSTOMERS have been left wondering if their weddings will be ruined after an industry-leading bridal chain filed for bankruptcy.
JLM Couture Inc. filed for Chapter 11 bankruptcy protection in Delaware on Monday after more than 35 years in business.
The dressmaker declared over $2.1million in liabilities and between $1million and $10million in assets.
Part of the restructuring plan includes significantly scaling back its business and safeguarding its assets in order to continue normal operations.
A spokesperson for the company said this is "the most strategic move to protect our valued operations and assets."
"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 company wrote in a statement.
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Hailey Paige Gutman was a designer for the brand before the two clashed in December of 2022 over Gutman's use of the company's social media accounts.
JLM Couture said the ongoing litigation caused “extensive damage," along with supply chain disruptions due to the pandemic, and New York City real estate issues.
Gutman has since resigned from her post at JLM and taken 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:
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"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.
"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."
A BEACON OF HOPE
Similarly, in April of this year, David's Bridal filed for bankruptcy for the second time.
Luckily, it was bought by Cion Investment Core, leading chief executive officer Jim Marcum confident that the company has a bright future.
He noted that David's Bridal was back and will continue to be popular with brides who are on a budget.
"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.
"I don't think we could be better positioned than any retailer in this country for the segment we're in."
The company also launched a wedding planning service as a type of one-stop-shop feature.
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Several companies have been pushed into bankruptcy this year; you can see the full list of businesses that filed throughout 2023.
Plus, a beloved craft store is at risk of bankruptcy after mass layoffs.
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