227 New Jersey workers are set to lose their jobs as bankrupt retailer struggles to find a buyer to keep stores open.
The retail industry continues to suffer as stores close down and staff are laid off.
Bridal retailer, David's Bridal, has filed a Worker Adjustment and Retraining Notification, or WARN Act notice advising it plans to lay off 227 New Jersey workers in August. In addition, it will auction off its retail store locations in New Jersey.
Despite selling one out of every three wedding dresses in the United States and a booming wedding industry, David's Bridal has filed for bankruptcy and is trying to find a buyer, so the retail stores remain open.
“Of course, no outcome is certain, but we want to assure the market and our employees that we are working as hard as we can to find a buyer to bring the iconic David’s brand into the future." Kelly Cook, chief marketing officer for David’s Bridal
The chances of finding a buyer seem bleak, according to an update from the attorney for David's Bridal creditors. An article in Bloomberg on the search for a buyer states:
The company’s bankruptcy is “very, very bleak,” because of a variety of challenges, including changing cultural norms and values, said Bradford Sandler, a lawyer speaking on behalf of a committee of the retailer’s unsecured creditors. It’s possible David’s lenders won’t be repaid in full, Sandler said, raising questions about how much junior creditors may recover. The retailer owes lenders about $257 million, according to an April court filing.
David's Bridal Locations in New Jersey
- 3633 Route 9 North, Freehold, NJ 07728
- 611 Route 18 South, Summerhill Square, East Brunswick, NJ 08816
- 539 Route 38 West, Routes 38 & 73, Maple Shade, NJ 08052
- 1555 Almonesson Rd., Space S-2A, The Court at Deptford II, Deptford, NJ 08096
- 1634 US Route 22, Watchung, NJ 07069
- 520 Hamilton Commons, Mays Landing, NJ 08330
The retail apocalypse
David's Bridal follows several large retail businesses that have faced financial difficulties.
Over the last two months, Bed Bath & Beyond, Party City, and Tuesday Morning have filed for bankruptcy, while other major retailers such as Walmart and Macy's have closed stores. There are predictions over 50,000 will close by 2028. According to Insider, already in 2023, "nearly two-dozen companies have already announced layoffs impacting hundreds, sometimes thousands of employees."
Your thoughts
Do these layoffs affect you? Do you believe the government should offer these businesses more financial support? Are you concerned about those people who will lose their jobs? Do you fear we could be heading towards a recession?
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