David's Bridal, one of the largest wedding gown retailers in the United States, is set to lay off 82% of its workforce ahead of bankruptcy. The company previously declared bankruptcy in 2018 and is now eliminating a total of 9,236 positions across the country in a desperate attempt to save money.
As it prepares to file for bankruptcy for the second time in five years, industry experts believe that a massive cost-cutting process is taking place within the struggling company. Following changes in consumer shopping habits due to the pandemic, many retailers are finding it increasingly difficult to stay afloat as sales continue to plummet.
"The current situation has forced us into making some very tough decisions," said David's Bridal CEO James Marcum. "We have been hit hard by COVID-19 and need to take drastic measures if we want any chance at salvaging our business."
The layoffs will affect workers throughout all levels and departments within David's Bridal. Employees were informed about this decision early last week through internal communications channels.
"We understand how devastating this news may be for employees who have put their heart and soul into this company," added Marcum. "However, these unfortunate circumstances leave us with no other choice but to downsize our workforce significantly."
According to industry analyst Sandra Thompson from Global Retail Insights: "Many traditional brick-and-mortar stores like David’s Bridal had already been facing issues before COVID-19 struck – such as increased competition from online retailers or shifting consumer preferences toward more casual weddings." She continued: "The pandemic merely exacerbated those problems by forcing people indoors and away from physical shops."
With an uncertain future looming ahead for retail businesses like David’s Bridal, they must adapt quickly if they hope not only survive but also thrive amidst new market conditions post-pandemic.
"It won't be easy,” said Thompson, “but companies that are able to pivot and embrace the changing landscape will have a much better chance of success in the long run."