This week brought some surprising financial news to the wedding world! After over 80 years in business, Alfred Angelo unexpectedly closed its doors – leaving both brides and employees desperate for answers. They officially filed for Chapter 7 bankruptcy earlier this month with no public warning of any looming financial trouble occurring within the company.
Choosing Chapter 7 bankruptcy means they are going to completely liquidate all assets and close their doors rather than restructure their finances. According to the New York Times Alfred Angelo said it had no more than $50,000 in assets, but more than $50 million in liabilities. That’s a debt ratio of a 1,000 to 1 – which means that for every $1 in assets, the company has a $1,000 in debt. Alarm bells should have been going off long before this point. How can a company leave its own employees and thousands of brides scrambling?
I bought my wedding dress from Alfred Angelo in 2014 and can’t imagine how stressed these brides must be! With all the negative attention this store is receiving, I’m going to try and put a positive “learning experience” spin on it (too soon?). This can be used as one example of why I stress the importance of an emergency fund. If brides have an emergency fund on hand, they are able to go purchase another dress with less stress while waiting for their refunds. Companies like David’s Bridal are seizing the opportunity to offer expedited shipping and discounts for brides affected by the closures. An emergency fund should consist of having about 6 months of expenses readily accessible – and as we learned this week, can be used for more than an unexpected car repair.
For more information, the Alfred Angelo website directs you to email their Bankruptcy trustee at email@example.com.
Were you or someone you know affected by the Alfred Angelo closures? What do you think of the way the situation was handled? Let me know in the comments below.