David’s Bridal to keep most stores open
David’s Bridal is now expected to keep the majority of its stores open, across the United States and in Texas, after finalizing a deal with a new buyer, CION Investment Corp., an asset management company based in New York.
The wedding-wear behemoth on Monday announced it had closed its transaction with CION Investment in a deal that will, it said, allow the chain to continue operations at up to 195 of its roughly 300 stores across the United States, preserving some 7,000 jobs. David’s Bridal had filed for Chapter 11 bankruptcy protection in April after the COVID-19 pandemic brought several difficult years to America’s wedding industry.
“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,” said CEO Jim Marcum in a statement.
The company has dressed more than 70 million customers since opening as a single boutique in Fort Lauderdale in 1950, Marcum said. And although the chain has faced increased competition in recent years, Marcum has said, most Americans in the market for wedding gowns consider David’s Bridal at some point.
In a letter to the Texas Workforce Commission this month, before the deal with CION was completed, David’s Bridal had warned that it expected to lay off workers at 13 of its 21 Texas stores, including three in the Houston area. The successful completion of the deal means that the company now expects to keep most of those locations open, the company said.
“As one of David’s Bridal’s key markets, we will have a strong presence in Texas and planning is underway to communicate more on store locations,” the company said on Tuesday in an email.