David’s Bridal saves up to 195 stores and 7,000 jobs by selling the company
CION Investment Corp. announced it completed the purchase of Conshohocken-based David's Bridal on Monday.
Future brides can still say “yes to the dress” at David’s Bridal.
The Conshohocken-based affordable wedding gown retailer announced that it completed its sale to business development company CION Investment Corp. on Monday, halting a series of chaotic months that included layoffs and a bankruptcy announcement.
» READ MORE: David’s Bridal is laying off some workers sooner than expected
Through a $20 million investment, David’s Bridal is expected to continue operating up to 195 stores while preserving 7,000 jobs nationwide, according to the announcement of the sale.
The wedding gown retailer, which had more than 300 stores, also has locations in Canada and Mexico.
The company, which once claimed it sold one in three wedding gowns in the country, has struggled to keep up with changing buying habits, exacerbated by the pandemic. Brides were postponing their weddings or opting for simpler gowns.
According to the New York Times, COVID-19-related production lockdowns further complicated the company’s financial landscape as David’s Bridal had to move production overseas and rely on more expensive airfreight to avoid shipping delays.
In a statement, Gregg Bresner, CION’s president and chief investment officer, said reducing the retailer’s debt burden and store portfolio “will enhance the company’s ability to benefit from the expected post-COVID rebound in wedding activity and position the company for future success.”
The retailer first announced plans to address sluggish sales in April, with the intention to lay off more than 9,000 workers, including at 15 locations in Pennsylvania across nine counties.
The company filed for Chapter 11 bankruptcy protection shortly after — the second time in five years — and began seeking a buyer. According to Reuters, the company’s primary goal was to preserve the business through a buyer.
A U.S. bankruptcy judge approved the CION sale in mid-July. It’s unclear how many people were laid off in Pennsylvania ahead of the sale. A spokesperson for the retailer did not immediately respond to a request for comment.
The sale marks the beginning of the 70-year-old retailer’s “next era,” said David’s Bridal CEO James Marcum.
To date, the company has ventured past gowns, offering wedding websites, checklists, and registries through its planning service Pearl by David’s.
The company also markets itself as a one-stop shop for other milestones, including graduations, proms, and quinceañeras.
The company says it has dressed more than 70 million customers to date.