Pennsylvania-based David’s Bridal, which sells wedding dresses and other clothing and accessories for special occasions, could lay off thousands of people across the country and is exploring a sale of the company.
The company filed a WARN (Worker Adjustment and Retraining Notification) notice with the Pennsylvania Department of Labor & Industry informing the state that about 9,236 people nationwide could be laid off, including employees at its Pennsylvania stores. The retailer didn’t say how many people could be laid off in the state.
David’s Bridal has a number of stores in Pennsylvania, including three in the Pittsburgh region. Although the company doesn’t know for certain what the ultimate outcome will be, it said it notified the state of the possible layoffs in order to fulfill legal requirements.
“This is to advise you in accordance with the requirements of the federal Worker Adjustment and Retraining Notification Act (the “WARN Act”) that David’s Bridal, LLC (the “Company”) is in the process of evaluating its strategic options, including a sale as a going concern, a sale of certain assets and intellectual property, or a potential winddown of some or all of the business and a resulting limited or Company-wide reduction in force and job elimination of employees within the State,” the company said in the notice.
The company said the corporate layoffs would take place in three phases: Phase 1 would be April 14; Phase 2 would be May 13-27; and Phase 3 would run from June 12 to Aug. 11.
The distribution center layoffs would take place between June 12-26. The field/store layoffs would take place between June 12 and Aug. 11.
“The timetable for closing is based on the best information available, although it is subject to change as the Company continues to evaluate its options,” the WARN notice said. “The layoffs are expected to be permanent, although new opportunities may become available depending on the outcome of the Company’s sale efforts.”
The layoff announcement comes just days after the New York Times reported that the company is struggling to manage its costs after emerging from bankruptcy four years ago, and it is exploring options.
Laura McKeever, a spokesperson for David’s Bridal confirmed that a “sale process is underway”.
“We are evaluating our strategic options and a sale process is underway,” she said in an email. “At this time, there are no updates to share. As ever, providing excellent service remains our focus and we are committed to serving and delivering for our brides and customers and being part of magical moments.”
The WARN Act is federal legislation that offers protection to workers, their families, and communities by requiring employers to provide notice 60 days in advance of a covered-business closing and covered-business mass layoff. Although there are some exceptions to the 60-day rule. The WARN notice was dated April 13.
“Unfortunately, the Company was not able to provide early notice of the layoffs as it qualifies under the “faltering company” and “unforeseeable business circumstances” exceptions set forth in the WARN Act,” the company said in its notice.
