Montgomery County-based David’s Bridal, one of the largest wedding gown retailers in the United States, has begun a three-phased layoff plan in Pennsylvania following their recent Chapter 11 bankruptcy filing.
In a WARN filing with the Pennsylvania Department of Labor and Industry, David’s Bridal said they began the first phase of their in-state layoff plan on Friday, with phase two set to occur from May 13 through May 27, and phase three set for June 12 through August 11. The filing currently does not include the total amount of employees that will be laid off in-state, however the layoffs will affect 15 stores in nine counties across Pennsylvania, including their three locations in Montgomery County.
In total, David’s Bridal said they intend to layoff 9,236 of their more than 11,000 workers nationally.
"The scale of these layoffs suggest that David's Bridal is in crisis mode," said Neil Saunders, managing director at GlobalData Retail, in a report by CNN’s Parija Kavilanz. "It indicates there is massive restructuring going on behind these scenes with a view to conserve cash as the company prepares for either bankruptcy or a sale."
Kavilanz’s report adds that while all the stores will currently remain open, the company will likely shutter some locations as part of their bankruptcy plan.
The announcement comes days after a New York Times report which indicated the company intended to file for bankruptcy for the second time in five years. The report adds the company may explore a potential sale as part of their restructuring plan.
A report by 6ABC states the company intends to fulfill all of their 130,000 outstanding orders, and customers can continue to submit returns and exchanges, as well as use gift cards and request alterations.
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