Updated 3:35 p.m. ET July 24, 2023: David’s Bridal announced July 24 that it closed its previously announced deal with Cion Investment Corp. on the sale of substantially all of the retailer’s assets. According to David’s, Cion has invested $20 million into the new business and has assumed certain bankruptcy-related liabilities. Additionally, Bank of America will continue to provide financing through 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,” Jim Marcum, David’s Bridal CEO, said in a statement.

Gregg Bresner, CION president and chief investment officer, added, “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.”

Read the original story, which was posted July 17, 2023, below.

David’s Bridal received court approval to sell its business to New York City asset manager Cion Investment Corp. in an 11th hour deal that will allow the bankrupt wedding gown retailer to avoid a total shutdown.

During a July 14 hearing in U.S. Bankruptcy Court for the District of New Jersey, Judge Christine Gravelle signed off on the agreement, which is expected to save more than 7,000 jobs and up to 195 locations, according to Reuters.

Under the terms of the no-cash transaction set to close July 19, Cion will pay the formalwear chain’s debts, costs related to renewing or breaking store leases, and professional fees incurred during bankruptcy proceedings. The sale will also enable the retailer to trim its debt from $256.9 million to $50 million.

Though David’s Bridal signed non-disclosure agreements with 62 potential buyers, it received offers only from Cion as well as two other bidders who were solely interested in acquiring the chain’s brand name and intellectual property, Reuters reported.

Cion, a previous investor in David’s Bridal that provided upward of $23 million in incremental funding since 2020, plans to run the Conshohocken, Pa.-based chain as a scale-down business and keep the existing management team in place, including Chief Executive Officer James Marcum, according to The Philadelphia Business Journal.

In April, David’s Bridal sought voluntary bankruptcy protection for the second time in five years, citing shifting consumer preference, uncertain economic conditions and the post-pandemic environment. At the time, the chain expected to lay off more than 9,000 of its 10,000 employees working across its nearly 300 stores unless it was able to find a “buyer who can continue to operate our business going forward.”

Despite being one of the largest sellers of wedding gowns in the U.S., the company struggled with growing debt and declining sales in recent years, prompting its first bankruptcy filing in 2018. After reaching a deal with lenders to reduce its debt by more than $400 million, David’s Bridal emerged a year later with a new, lower-price strategy and an expanded online catalog.

After the latest Chapter 11 filing, David’s Bridal said it would soon begin shrinking its vast brick-and-mortar footprint through lease auctions, including the retailer’s eight New Jersey shops; however, proceedings were cancelled after Cion submitted its going concern bid July 3, The Philadelphia Business Journal reported.

Of the nearly 200 stores listed in the sale agreement, 105 have a 90-day designation period, during which the new owner has three months to take on the lease or reject it, according to Women’s Wear Daily.