David’s Bridal Plans 9,236 Layoffs Amid Speculation About a Potential Bankruptcy Filing or Sale
David’s Bridal plans to lay off 9,236 employees — the bulk of its workforce — in the next few months.
In a WARN notice filed in its home state of Pennsylvania, David’s Bridal, a 300-unit retailer, highlighted a three-phase plan with the first round of layoffs starting today. The second round will run from May 13 through May 27, and the third phase is planned to get underway on June 12 and run through Aug. 11. In Pennsylvania, 15 stores will be impacted.
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Needless to say, many brides may be concerned about what this means for their orders and/or purchases. The same could be said for bridesmaids, flower girls and prom-goers, who are David’s Bridal customers.
The filing comes less than a week after media reports of a possible bankruptcy filing or possible sale surfaced in The New York Times. Should the company file for bankruptcy, it would be the chain’s second bankruptcy filing in less than five years.
David’s Bridal spokesperson Laura McKeever said Friday, “We are evaluating our strategic options and a sale process is underway. At this time, there are no updates to share, and all stores are open to serve customers. 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.”
As for how many employees the 70-year-old Conshohocken, Pennsylvania-based company has in total, McKeever said, “That is not information we disclose.”
David’s Bridal is reportedly working with the investment bank Houlihan Lokey. Vice president of communications John Gallagher declined comment Friday on layoffs.
With stores primarily nationwide in addition to locations in Canada and the U.K., as well as franchised locations in Mexico, David’s Bridal has been the leading chain for budget-conscious brides. The company also sells special occasionwear, accessories, and prom dresses among other items.
The retailer has also reportedly hired law firm Kirkland & Ellis. Spokeswomen for Kirkland & Ellis did not immediately acknowledge media requests Friday. David’s Bridal is also said to have hired the investment firm BRG (Berkeley Research Group). Executives at BRG did not respond immediately to requests for comment Friday.
The 9,000-plus impacted employees were said to have received warning letters that their jobs were subject to termination, and job cuts at David’s Bridal corporate office were believed to have been made, according to one longtime bridal industry executive.
The retailer, which has Oaktree Capital Management as a leading shareholder, no longer has the market share it once had. Under the leadership of former president and chief executive officer Robert Huth, David’s Bridal had 319 stores and sales exceeding $760 million. In the fall of 2012, David’s Bridal was purchased by the private equity firm Clayton, Dubilier & Rice for $1.05 billion. At that time, the retail chain had about a 36 percent share of the bridal market compared to its estimated 18 percent today, one industry source said.
In its last bout with bankruptcy in the fall of 2018, David’s Bridal had reached a deal with lenders to reduce its debt by more than $400 million. In April 2021, the bridal company closed a $70 million loan provided by CPPIB Credit Investments, a subsidiary of the Canada Pension Plan. That loan matures next year and is being used to fund operations and for corporate purposes.
The bridal category was one of the stronger sectors that emerged from the pandemic shutdown, but changing lifestyle preferences continue to plague some brands that have failed to adjust accordingly. In 2026, bridal wear is expected to reach $69.9 billion in volume, compared to $55.5 billion in 2020, according to the Global Bridal Wear Industry Report.
Kleinfeld Bridal co-owner Ronnie Rothstein said Friday, “With David’s large retail footprint and bridal penetration, retailers and manufacturers will certainly benefit from the now available talent across their sales, alterations and support teams.”
“We anticipate an immediate surge by brides and value retailers to capture the remaining David’s Bridal inventory, while local moderate-priced bridal boutiques aggressively market to attract what was the David’s customer,” Rothstein added.
The displaced workers may find opportunities with other companies. Anne Barge owner and creative director Shawne Jacobs said Friday that she is “very interested in this development, as it could lead me to hire more qualified seamstress to increase staff in our factory. Of course, they would have to go through training to learn how we like our luxury gowns to be finished.”
Despite the dominance of David’s Bridal in the opening price point sector and the ramifications from its extensive layoffs, the National Bridal Retailers Association’s president Michelle McFarland said “the industry as a whole is healthy and poised to weather the current economic speed bump.”
The organization represents more than 6,000 independent stores in the U.S. and Canada. Its director Ann Campeau noted how many bridal-sector workers chose the space because of passion. “This news says more about how one particular company is run and less about the entire industry. Many independent bridal stores are experiencing extremely strong numbers for bridal, tuxes, prom and more,” she said.
Independent boutiques can often respond faster to consumers’ demands than chains can, she said. Meanwhile, the industry is moving toward more paid experience appointments and higher margin goods, which should help with cash flow, Campeau said.
“Drastic layoffs create staffing shortages that can lead to customer dissatisfaction,” she added. “Payroll can seem like the first thing to cut when times are tight. We believe in a team-first mentality, knowing that a store’s success depends on the happiness of our staff.”
“Independently owned and operated brick-and-mortar bridal stores are able to adjust to fluctuations in bridal foot traffic much more quickly than a large national chain like David’s,” McFarland said, adding that many Gen Z-ers prefer to shop local and value experience more than price.
Like many bridal brands that have branched out to try to capture more of the special occasion business to create new revenue streams, David’s Bridal had introduced new ventures in recent months, such as launching more affordable bridesmaid’s dresses and opening pop-up shops for prom dresses in December. Last month, the company joined forces with the furniture retailer Ashley to stage trunk shows to offer shoppers sales incentives for both brands. Last spring, the retailer acquired the bridal tech company Anomalie, which offers shoppers the option of designing and custom-ordering their gowns. Anomalie’s cofounder and chief executive officer Leslie Voorhees Mean could not be reached immediately for comment Friday.
Bridal designer Justin Warshaw of the Justin Alexander label agreed that the layoffs were not a reflection of the bridal industry, noting how many specialty bridal boutiques are coming off their strongest year in the past decade. “David’s [Bridal] has struggled to keep up with the experience and service levels that local boutiques are able to offer,” he said.
Although the layoffs are “unfortunate,” he said the streamlining should help David’s Bridal focus on their better performing locations, while considering reducing storefronts. “Meanwhile, specialty boutiques will welcome the newly available talent, as low unemployment rates have made it difficult for shops to find and hire staff,” Warshaw said.
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