David’s Bridal is reportedly laying off more than 9,000 of its employees over the next months.
A notice to the Pennsylvania Department of Labor & Industry from the company stated that 9,236 layoffs were expected nationwide. The first set of layoffs happened on Friday with two more phases expected to roll out from May 13 to 27 and June 12 to Aug. 11.
The company is “evaluating our strategic options and a sale process is underway,” David’s Bridal told CNN Business. They also said that all of their stores are currently open.
David’s Bridal is believed to be preparing to file for bankruptcy for a second time in about five years, The New York Times reported on April 7. The company could file over the next couple of weeks.
The last time the company filed for bankruptcy was in 2018 after growing debt and declining wedding dress sales but was able to make a comeback in 2019, according to CNN Business.
“David’s Bridal boasts that it sells one of every three wedding dresses in the United States. Yet it continues to struggle to manage its costs after emerging from bankruptcy five years ago, and it is working with advisers as it explores its options,” the Times reported.
David’s Bridal is one of the latest retailers to feel the strain of tightened credit conditions. Other stores include Bed Bath & Beyond, which sold stock in February to push off a bankruptcy filing, Party City filed for bankruptcy in January, and Tuesday Morning did in February, according to the Times.
If David’s Bridal files for a second time, it could lead to some store closures, the Times reported. Currently, the company has about 300 locations, most of them in the United States.