BRIDES LEFT SCRAMBLING
Dressmaker Alfred Angelo has filed for bankruptcy. What recourse do customers have?
After 30 years in the bridal business, Donna McDonald was as shocked as any bride- to- be when it came to the news about the long- respected Alfred Angelo dressmaker filing for bankruptcy.
“It was a great company. They gave you excellent service, but what dirty pool to leave us hanging there,” said McDonald, owner of the Bay Bridal Boutique in Traverse City, Mich.
“I found out from a bride who called me and said, ‘ Alfred Angelo went out of business,’ ” McDonald said, and she had two calls from other brides last Thursday who had heard rumors.
Alfred Angelo — based in Delray Beach, Fla. — finally disclosed on its website Monday that the company had filed for Chapter 7 bankruptcy July 14, shutting down about 60 Alfred Angelo stores and leaving independent bridal shops in the dark about whether the Alfred Angelo dresses those stores had ordered would arrive in time for late summer and fall weddings.
“We apologize for the inconvenience and hardship resulting from this event,” Alfred Angelo said on its website.
The filing by Alfred Angelo Newco Inc. spans 1,044 pages. Along with the names of bridal shops and other corporate creditors, the filing includes what appear to be the names and addresses of hundreds of women who may be owed bridal gowns.
Alfred Angelo Newco listed estimated assets of $ 10,000,001 to $ 50 million and estimated liabilities of $ 50,000,001 to $ 100 million.
Eighteen related companies, with registrations in the U. S., China, Australia and Canada, also submitted similar bankruptcy petitions, the filing shows. A meeting of creditors has been set for Aug. 28 in West Palm Beach, Fla., another filing in the case shows.
What should brides do now?
NO. 1: DON’T LOSE YOUR COOL, BUT KEEP IN CONTACT
If you ordered something that was not delivered from a company that filed for bankruptcy, be sure to follow up and contact the bankruptcy representative.
In the Alfred Angelo case, send an email to alfredangelo@ mjstrustee. com. Margaret Smith is the Chapter 7 Bankruptcy Trustee for Alfred Angelo.
Give details of your wedding date, what you ordered and what you paid. You want to include your order number, the name as it appears on your order and the location of your purchase. Alfred Angelo said it will post additional information on the status of dresses on its website, alfredangelo. com, as it becomes available. We’ve seen plenty of Chapter 11 filings for retailers in which the retailer attempts to restructure its operations and close some stores but ultimately keep some of its business going, maybe even just online. But Alfred Angelo’s Chapter 7 bankruptcy involves a liquidation of the business. Pay attention to what you ordered, too. If you’re a die- hard fan of reality TV shows such as “Say Yes to the Dress,” it might be difficult to imagine that some bridal parties don’t dwell on the label of the dress. Yet some might have an Alfred Angelo dress on order at an independent bridal shop and not yet realize it. Contact the bridal shop. Look into their refund policies. See what the store owner might do to help you. It’s also possible that your dress might have arrived this week. Really.
NO. 2: CUT YOUR LOSSES, AND MAKE SOME PHONE CALLS
Some consumer advocates suggest that you contact your credit card company to dispute the charges, such as a down payment or other payment you’ve made on an item that you haven’t received.
If a business closes and has not delivered your goods, consumers can file a complaint with state regulators as well. Keep your documents to show what items were ordered, what you paid and when delivery was promised.
Once a business files for bankruptcy, though, any recovery is in the hands of the bankruptcy court. Remember, recoveries in bankruptcy, if there are any, can be pennies on the dollar.
NO. 3: WATCH FOR SCAMMERS WHO PLAY UP BIG HEADLINES
The Better Business Bureau recommends that brides stay away from anyone who might claim to be able to help them retrieve a dress from a closed store for a fee. Only communicate with a designated bankruptcy attorney.
The Federal Trade Commission regularly warns against what are called “Recovery Scams.”