The owner said they are filing for bankruptcy and cited the COVID-19 pandemic for its financial hardships.
The owner said they are working with the Small Business Administration to find a buyer for the company.
ROCHESTER, Minn. – A longtime business that has served generations of brides and grooms is abruptly closing its door.
Mestads Bridal and Formal Wear in Rochester says it is closing after 43 years.
A Facebook post states “With the circumstances over the last three years, COVID being a main factor, and after exhausting all federal and state options, Mestads will be closing effective February 1st, 2023. Even though our doors are closing, we are hopeful for an efficient and timely transition for new ownership to continue serving Southeastern MN. The Mestads team thanks you, Southeastern MN, for buying locally and in person. Although this is not the way we hoped to close our doors, we are proud of what we’ve been able to build with you.”
The post also directs questions about outstanding orders or other matters to a “Chapter 7 Trustee.” The Internal Revenue Service says Chapter 7 refers to an aspect of bankruptcy law which “7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent.”
Update as of Thursday night:
Mestad's Bridal and Formal Wear posted on Facebook on Thursday to give customers an update on their orders.
"The chapter 7 trustee is working with the SBA and a potential purchaser at this time. Until that process is completed, please be patient and know that your special orders will be taken care of by the potential purchaser of the business. A generous benefactor has agreed to pay for the special orders and work with the manufacturers if the business is not sold. So, please do not worry about your orders at this time. The trustee will be sending out a letter stating something similar to this post. We ask for your understanding and patience during this time. When we know more, we will be in touch."
