David’s Bridal, which declared bankruptcy in April 2023, has been sold to CION Investment Corp. in a no-cash transaction, according to multiple media reports. The deal, which has been approved by the U.S. Bankruptcy Court for the District of New Jersey, would keep approximately 195 brick-and-mortar stores open and maintain the jobs of 7,000 of the retailer’s 10,000 employees.
Additionally, the bankruptcy sale reduced the company’s overall debt to about $50 million from its previous level of $256.9 million.
Besides CION, the other bidders offered to buy the David’s Bridal brand name and IP but not its stores or inventory, and neither offered more than $250,000, according to a U.S. News and World Report article that quoted in-court statements by David’s Bridal financial advisor Surbhi Gupta: “Candidly, I don’t know if there are other viable options. I’m not even sure we have the funds to finance a liquidation of the business.”