According to sources, 22 employees at David’s Bridal in Davenport are being laid off as a result of the company’s recent Chapter 11 bankruptcy filing.
According to the Iowa Worker Adjustment and Retraining Act, employees at the Davenport store will be let off on June 12 and were notified on April 14. Additionally, David’s Bridal employees in Clive, Marion, and Sioux City will be laid off.
The Davenport location is at 5252 Elmore Street, right next to BioLife Plasma Services previously Dick’s Sporting Goods. An staffer stated on Friday morning that all stores are staying open. The employee was unable to confirm how many people worked at the Davenport facility.
The dress firm claimed in an April 17 news release that stores would remain open and that it would continue operating in the ordinary course, including by fulfilling all customer orders without disruption or delay.
The company stated that it was committed to keeping its promises to customers, employees, and partners, and that it was seeking first day relief from the court, including authorization to continue payment of employee wages and benefits, maintain certain customer programs, and honor obligations to critical vendors.
CEO James Marcum stated that the company has improved its marketing and client interaction processes over the past many years, but blamed the company’s demise on the COVID-19 pandemic.
CNN reports that the corporation would lay off over 9,000 of its 10,000-person workforce. This is the company’s second insolvency filing in the last five years.