After Conshohocken, Pennsylvania-based bridal retailer David’s Bridal, LLC officially filed for Chapter 11 bankruptcy this week, the company is warning the state of Wisconsin about several possible layoffs.
A WARN notice sent to the state’s Department of Workforce Development explains the company is in the process of evaluating its strategic options following the bankruptcy filing. These options could include a sale of certain assets and intellectual property, as well as a “potential winddown of some or all of the business,” according to the WARN notice.
The Wall Street Journal reported David’s Bridal will close all of its stores if a buyer for the company does not emerge.
These future closures could affect the David’s Bridal stores in Brookfield, located at 16900 W. Bluemound Road, and Greenfield, located at 8450 Sura Lane. There are also stores in Appleton, Madison, Ashwaubenon and Eau Claire. David’s Bridal has a total of 147 employees in Wisconsin.
“At this time, it is uncertain whether the company will be ceasing operations entirely or the closure will be limited to certain locations,” according to the WARN notice.
The mass layoffs would happen in three phases. Phase one, involving corporate employees, has already begun. Distribution center employees could be laid off as part of phase two from June 12 through June 26. Finally, store employees could see layoffs between June 12 and Aug. 11.
“Our business continues to be challenged by the post-COVID environment and uncertain economic conditions, leading us to take this step to identify a buyer who can continue to operate our business going forward,” said James Marcum, chief executive officer of David’s Bridal, in a statement.
The layoffs are expected to be permanent, although new opportunities may become available depending on the outcome of the company’s sale efforts.
