CION Investment Acquires Assets of David’s Bridal

David’s Bridal has closed a successful transaction with CION Investment Corporation for the sale of substantially all of its assets.

Through the transaction, up to 195 stores and 7,000 jobs at the bridal and special occasion retailer will be preserved across the U.S., the companies said in a Monday (July 24) press release.

As of April, David’s Bridal had 294 stores across the United States, Canada, the United Kingdom and franchise stores.

CION, a business development company, has invested $20 million into the new business to fund future growth and has assumed certain bankruptcy-related liabilities, according to the press release. Bank of America will also provide financing to the business with a $50 million revolving credit facility and a $20 million term loan facility.

“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,” David’s Bridal CEO Jim Marcum said in the release. “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.”

David’s Bridal filed for bankruptcy in April, saying it would be forced to close all its stores unless it found a buyer to continue operating the bridal chain.

Despite being a major supplier of wedding gowns to 25% of the brides in the United States, the filing marked the second attempt at Chapter 11 in under five years.

The company said at the time that it attributed the bankruptcy to the lasting impact of the pandemic and shifts in consumer behavior, including a national wedding rate that has declined to its lowest point in 121 years and the growing popularity of nontraditional wedding attire.

CION President and Chief Investment Officer Gregg Bresner said in the release: “We believe this transaction to substantially reduce the company’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.”

CION Co-CEO Mark Gatto added, “Our long experience with the operations and management of David’s Bridal and our position as a secured lender enabled us to facilitate a consensual bankruptcy exit transaction that we believe provides strong value to the company’s employees, vendors, landlords, business partners, and customers as well as to our shareholders.”