David’s Bridal Emerges From Bankruptcy With a New Owner

David’s Bridal will get a new lease on life now that CION Investment Corporation has closed its bankruptcy court-approved transaction to acquire the ailing wedding retailer, narrowly avoiding liquidation. The exact terms of the deal were not disclosed, but CION has invested $20 million into the business to fund growth and assumed bankruptcy-related liabilities, while Bank of America will provide a $50 million revolving credit facility and a $20 million term loan facility to enhance the retailer’s financial flexibility.

Up to 195 stores will be saved by the last-minute deal, though the company will end up even leaner than before. David’s Bridal will preserve 7,000 jobs, though it is unclear how this announcement will affect the ongoing 9,236 cuts announced in a WARN notice when the company filed for bankruptcy in April.

“Today’s announcement marks the beginning of David’s next era, and with CION’s partnership fully solidified, we are excited to continue to serve brides and customers well into the future,” said David’s Bridal’s CEO Jim Marcum in a comment regarding the deal. “We believe that the results of our competitive sale process represent the best outcome for our stakeholders, as it provides us with the time and resources to drive forward in implementing our strategic vision.”

However, David’s Bridal and CION will face headwinds as they seek to grow the company back into the premiere wedding destination. The number of weddings fell to the lowest level in 121 years in 2020 and has yet to fully spring back, according to Marcum in court documents. The industry only reached 1.9 million weddings in 2022, down from over 2.2 million annually in the years leading up to the pandemic.

Additionally, this is the retailer’s second trip to bankruptcy court in less than five years. David’s Bridal spent two months in Chapter 11 in late 2018 and early 2019 to improve its balance sheet, which could speak to longer-term operational weakness.

Still, David’s Bridal hasn’t taken recent challenges sitting down. In 2023 alone, the retailer rolled out multiple initiatives, including:

• House of Prom, a pop-up store concept designed to generate exposure for the brand outside of weddings and help it court the valuable teenage demographic.
• Pearl by David’s, a digital planning platform and vendor marketplace featuring registry planners, wedding checklists, and tools for creating wedding vision boards.
• The Wink, a series of product guides featuring seasonal content regarding trends and inspiration curated by the retailer’s internal designers.

These modern tools may help David’s Bridal remain relevant with today’s brides and grooms, but competition is fierce. Men’s Wearhouse has launched its own wedding-focused tool, Wedding Wingman. Trends like couples marrying later in life and growing interest in smaller weddings will likely change consumer expectations. Whatever the future holds, CION and David’s Bridal will have their work cut out for them.