from Challenger Gray and Christmas
David’s Bridal recently announced it is undergoing Chapter 11 bankruptcy to potentially eliminate $400 million in debt. The bridal wear retailer said it was not planning to close any stores or cut positions during this restructuring period. The announcement comes after several retailers declared bankruptcy with various outcomes.
So far this year, employers have announced 33,530 job cuts due to bankruptcy, 30,212 of which were announced by retailers. That’s compared to 4,970 bankruptcy-related job cuts last year. The largest announcement this year came from Toys”R”Us, which in March eliminated 30,000 jobs when it filed for bankruptcy and ceased operations.
Meanwhile, Challenger has tracked 1,127 store closures due specifically to bankruptcy in 2018. This is in addition to the 4,156 retail store closures due to bankruptcy announced through all of 2017.
“Like many industries this year, retail is responding to changing consumer demands and the implementation of new technologies that are disrupting how, where, and when consumers purchase goods and services,” said Andrew Challenger, Vice President of global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc.
“As a major industry, employing tens of thousands across the country, the potential loss of jobs will be significant. However, the new technologies implemented during this period across the industry could lead to an influx of jobs that require a higher level of skills, meaning those positions may demand higher wages and better benefits,” he added.
Meanwhile, Challenger has tracked 714,000 hiring announcements for the holidays, the highest number since the firm began tracking individual announcements in 2012. Traditional retailers have announced 427,000 of those hiring plans.