America’s largest wedding gown retailer David’s Bridal to layoff staggering 82% of its 11000 workers
David’s Bridal, one of the largest wedding dress retailers in the U.S. and which prides itself on selling one in three wedding dresses, is on the verge of laying off thousands of employees nationwide, according to a notice filed with the Pennsylvania Department. or labour.
The company, which filed for bankruptcy earlier in 2018, is reportedly preparing to file for bankruptcy again and will cut a total of 9,236 holdings nationwide in a drastic bid to save money.
The layoffs in Pennsylvania were to begin Friday and last through mid-August. affecting 15 stores in nine counties across the state.
Headquartered in Conshohocken, Pennsylvania, David’s Bridal has more than 11,000 employees in the US.
The chaos for the business comes as prom and wedding season kicks off, with most couples traditionally planning their wedding between June and September.
David’s Bridal, a major retailer of bridal gowns in the US, will lay off 9,236 jobs nationwide between now and August, affecting 15 stores
The company currently employs more than 11,000 employees and has stated that it is evaluating its strategic options and is undergoing a sales process
Even if it files for bankruptcy, David’s Bridal says there is no danger of brides and wedding parties not having their dresses delivered or canceling fittings. The company made a similar promise during their latest bankruptcy proceedings.
The 72-year-old company is the latest retailer to succumb to competition from online stores, which offer customers more choice and are often more transparent about prices.
David’s Bridal stores have turned into mere showrooms in recent years where customers try on dresses and test designs, only to buy them online for much cheaper.
The financial difficulties the company is in are a clear sign that despite the resurgence in spending on events such as weddings, this has not translated into equally buoyant retail sales.
Consumers are retreating from high-priced items as they feel the pressure of inflation.
David’s Bridal has not yet announced plans to close its stores, but is likely to say it is filing for bankruptcy for the second time in five years due to declining sales
A spokesperson for the company has said that the company is currently “evaluating our strategic options and a sales process is underway” and that all stores are currently open.
“Providing outstanding service remains our focus and we are committed to serving and delivering for our brides and clients and being part of magical moments.”
However, industry experts believe that a huge cost-cutting process is underway while the company is presumably in crisis.
“The scale of these layoffs suggests that David’s Bridal is in a crisis situation,” said Neil Saunders, general manager of GlobalData Retail. CNN.
“It indicates that there is massive restructuring going on behind these scenes to save money as the company prepares for bankruptcy or sale.
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“The company in its current form is not working and the hope is that a smaller entity will be more financially viable,” he said.
The layoffs come as the company prepared to file for bankruptcy for the second time in five years The New York Times.
David’s Bridal is one of the largest wedding dress retailers in the US, on the verge of selling one in three wedding dresses, and on the verge of laying off thousands of employees
The Times also noted that the company may be considering a sale as part of its restructuring plan.
David’s Bridal last filed for bankruptcy in 2018 due to declining wedding dress sales and mounting debt.
The company emerged from bankruptcy in 2019, but the COVID-19 pandemic in 2020 further impacted the wedding industry, leading to financial difficulties for the company.
The current layoffs at David’s Bridal are just the latest job losses across numerous industries, including retail and technology.
Walmart recently announced that it would lay off 2,000 workers at five US warehouses, while Best Buy is also cutting hundreds of store-level jobs.
After the pandemic, consumer shopping habits seem to have changed, meaning that many retailers are now struggling to stay afloat after a drop in sales.