David's Bridal warns of more than 9,000 layoffs as retailer explores sale
The retailer is in the process of being sold and is currently reviewing its options.
David's Bridal is exploring a possible sale and plans to layoff more than 9,000 workers. It may also close some locations.
In a letter sent to the Pennsylvania Department of Labor and Industry on Thursday, the Conshohocken-based retailer of dresses announced that it would be terminating 9,236 workers nationwide in the next five month.
Laura McKeever said in a Friday statement to Business Journal that David's Bridal is evaluating its strategic options. A sale process has already begun.
The filing outlines "strategic alternatives" such as "a sale to a continuing concern, the sale of certain intellectual property and assets, or the potential winddown or closure of all or part of the company, with a resultant reduction in workforce and job loss of employees in the state."
McKeever stated that all David's Bridal shops are still open for customers. The company operates more than 300 stores in the U.S. and Canada, as well as franchises in Mexico.
The New York Times reported a week ago that David's Bridal was reportedly considering bankruptcy for a second time in six-years. The retailer filed for Chapter 11 protection in November 2018, but emerged from the bankruptcy process in early 2019
According to the filing with the state’s labor department, a “mass layoff or plant closure” is expected at all the company’s locations. Any of its employees may be affected.
The filing states that "At this point, it is unclear whether the company will cease operations completely or the closure will only be limited to specific locations."
The filling states that the layoffs will be permanent but there may be other job opportunities depending on how well the sale goes.
It is not known how many layoffs will occur in Pennsylvania. According to the filing 15 stores in 9 counties will be affected. This includes three locations in Montgomery County and two in Bucks County. One store is in Delaware County.
The filing also included the dates for the anticipated layoffs or closures, as well as the David's Bridal staff that would be affected. The company expects to have three rounds of layoffs/closings for its corporate employees. The first round was implemented on Friday. The two other rounds will be held between May 13-27 and June 12-11.
Layoffs of distribution center employees are expected to take place between June 12 and 26. Field/store employees will be laid off between June 12 and August 11.
This timeline may change "as the company continues to assess its options."
David's Bridal opened its first store in Florida, in 1950, with headquarters at 1001 Washington St., Conshohocken.