Skip to content
Business — Retail — Pandemic — Jobs — Fashion — Finance — Industry — Ai

Bridal retailer David's Bridal to maintain around 200 stores following change of ownership

Having been in pursuit of a buyer prior to its bankruptcy filing in April, the chain recently secured an offer from Cion Investment Corp., which was granted approval last week.

,   and  Administrator
2 min read
Bankrupt chain finds a buyer in Cion Investment Corp., as deal receives approval last week.
Bankrupt chain finds a buyer in Cion Investment Corp., as deal receives approval last week.

Bridal retailer David's Bridal to maintain around 200 stores following change of ownership

Let's Chat:

Got some exciting news, mate! The bankruptcy court has given the green light for David's Bridal to get a new lease on life! The asset management firm, Cion Investment Corp, has stepped in, saving approximately 195 stores in the process.

According to their official statement, CION has poured $20 million into the company, aiming to support growth and take on certain bankruptcy-related responsibilities. To add to that, Bank of America will keep providing financing to David's Bridal via a $50 million revolving credit facility and a $20 million term loan facility [1].

This move not only keeps up to 195 stores humming but also ensures 7,000 jobs stay intact across the United States [1]. Sounds like great news for those seeking the perfect wedding dress, doesn't it?

Now, you might ask, why the desperate need for a buyer? Well, David's Bridal has been hunting for one since before they filed for bankruptcy in April. Things weren't easy back then. The search for a new owner was ongoing within the Chapter 11 process, but the retailer had also admitted it was prepared to liquidate if no buyer was found [2].

The big stores were dragging the retailer down, and their chief executive at the time wasn't shy about mentioning that store closures were likely. In April alone, the company said goodbye to 9,000 workers [2].

As of earlier this year, David's Bridal had 294 stores in its fleet, including 278 U.S. locations in 49 states, 12 stores in Canada, and four U.K. stores [3]. However, in a twist of fate, two other entities that bid on David's Bridal's intellectual property didn't want the inventory or the stores and weren't willing to offer more than $250,000 in cash [3].

"It's essentially this or nothing," said U.S. Bankruptcy Judge Christine Gravelle, as reported by Reuters [3]. Luckily, there was "something."

David's Bridal has been in and out of bankruptcy protection in recent years. They tried to shake things up by debuting their first Quinceañera collection, partnering with Little Tuxedos on children's formal attire, and introducing an eco-friendly wedding gown collection with recycled fibers. But the pandemic threw a curveball, causing couples to delay their events or take them online [4].

Sources:

[1] Retail Dive[2] Business Insider[3] Reuters[4] CNBC[5] MarketWatch[6] The Guardian

  1. Unsurprisingly, the ongoing pandemic has also disrupted the fashion industry, causing fashion retailers like David's Bridal to struggle.
  2. With the surge in digital transformation, AI is becoming increasingly crucial in the business world, aiding in strategic decision-making processes and customer personalization in the retail sector.
  3. With the rise of e-commerce, the finance industry is heavily investing in fintech solutions, providing seamless digital payment options to customers in the retail space.
  4. Amidst these challenging times, the business landscape is showing signs of resilience, with the retail, fashion, and business sectors experimenting with innovative strategies to adapt and thrive.

Read also:

    Related

    Latest