Stranded Brides and Their Consumer Protection Options

Last month, nationwide bridal salon Alfred Angelo closed its doors unexpectedly upon filing for bankruptcy. Now it appears these brides and bridesmaids won’t get their dresses. Do stranded brides have any Consumer Protection options?

National Bridal Shop Leaves Brides Stranded After Bankruptcy

On July 14, 2017, Alfred Angelo filed for Chapter 7 bankruptcy. In a moment, all 60 of its bridal stores nationwide, including in Grand Rapids, Michigan, closed at once. Brides-to-be panicked, flooding to the stores and pounding on the doors, trying to claim their dresses. 

Thousands of stranded brides were left in the lurch, not knowing if the dresses they ordered and paid for would be delivered, or if they would need to quickly find replacements. Then a month later the Chapter 7 Trustee said in a statement,:

“To the extent any order has not been fully delivered to a customer, it shall have to remain unfilled.”

The statement provided a form stranded brides could use if they believed the company owed them money, most likely in the form of a refund.

Bridal Shops and Bankruptcy Pose Special Risk to Consumers

Corporate bankruptcy is always a risk for consumers. But until the initial paperwork is filed with the federal bankruptcy court, it’s business as usual, at least as far as their customers know. This works for most consumer goods – where the customer pays for the item (or arranges payments) and receives it on the same day. But custom-order industries like bridal shops and new car dealerships, create space between payment and receipt, and that increases the risk that a sudden shut down could leave consumers at a loss.

Michigan Attorney General Gives Guidance on Consumer Protection

In response to the closing, Michigan Attorney General Bill Schuette issued a Consumer Alert. The statement explained how consumers could protect themselves when a business closes suddenly:

·        Limit your financial loss by cancelling installment payments, disputing charges made to credit cards, or stopping payment on your check.

• Lodge a complaint with the company on its website or by writing to the company headquarters.
• File a complaint with the Attorney General’s Consumer Protection Division as soon as possible any time goods or services are not delivered.
• Document your claim by gathering receipts, notes, and emails or letters sent to the company requesting a refund.

The Attorney General also warns consumers to consider the financial health of a company before making a large purchase, and to limit the size of your down payment.

Some stranded brides will face thousands of dollars in replacement costs and rush fees. The Attorney General’s office can assist these consumers get compensation when a business closes suddenly, leaving them with a loss.

Attorney Dani K. Liblang is a consumer protection attorney at the Liblang Law Firm, PC, in Birmingham, Michigan, helping consumers for over 30 years. Contact The Liblang Law Firm, PC, today for a free consultation.