View Full Version : BREAKING NEWS: DBS letter to dealers

07-11-2005, 08:47 PM

This letter was sent to dealers at 5pm July 11, 2004.

1583 Sulphur Spring Road Suite 108
Baltimore, Maryland 21227
Dear Valued Dealers and Friends,

I believe this is one of the most difficult letters I've ever had to write. It is with great sadness I must tell you DBS® will cease all operations as of July, 2005.

We have struggled with the business for the last several years. When our volume was high and our dealer numbers were up we were able to make a profit on the small margins we worked with. However, when business diminished and our dealer numbers fell, this became impossible. Lenny and I have been financing the business personally for the last several years. Each year we hoped the business climate would improve. Each year we thought about the people we work with who are like family and the dealers who have become our friends, not just business acquaintances. Each year we considered how proud we were of the reputation we've held in the marketplace. Unfortunately, we have no way to be able to continue funding the business. Our company has filed a Chapter 7 bankruptcy with us as the largest creditor, by far.

We have attempted to fill all orders in house for bridal gowns with the correct size, color and comparable value from our inventory. We know some brides will be receiving gowns they may not choose to wear but we are trying to make an attempt to diminish their losses. They are free to sell or put into consignment any gown they do not want to wear. In terms of bridesmaid's orders, there's nothing we can do to fulfill these obligations. We have supplied each customer with the order number and necessary information to be able to call the manufacturers directly. Every customer has been sent a letter advising him or her of our situation and letting them know you hold no liabilities. Of course, you must cease taking any orders at this time until you have established yourself with another source for acquiring goods.

All orders received after June 15th, 2005 have had the monies put into an escrow account for the court or trustee to determine how to handle. We had no desire to keep anyone's money once we knew we couldn't continue in business. All orders received after June 27th have been put aside and the customers and/or dealers will be receiving that back in the mail. Those orders were never processed.

There are a number of companies that may be contacting you regarding supplying you with merchandise. Your contract with DBS® is now null and void and you are free to proceed in a business manner that is productive for you as an Independent Contractor.

Our sincere apology for any hardship this decision will make for you. We are extremely devastated to leave our business and our industry in this manner. We've spent a good portion of our lives trying to do the absolute best job we could.

Many good wishes for your continued success and happiness.


Sandra and Leonard Leibowitz