David’s Bridal had been attempting to sell itself prior to filing for bankruptcy in April. The bridal dress retailer said in April that all of its more than 290 stores would close unless a buyer for the company emerged as it underwent its second bankruptcy stint in five years.
CION has invested $20 million into the new business to fund future growth and has assumed certain bankruptcy-related liabilities, David’s Bridal said. Additionally, Bank of America will continue to provide financing to enhance the business’ financial flexibility through a $50 million revolving credit facility and a $20 million term loan facility.
Stores that had been targeted for possible closing included locations in Miami Twp. (on Prestige Plaza Drive) and West Chester Twp. in Butler County (at 7676 Voice of America Drive), plus stores in Canton, Cleveland, Columbus, North Olmstead and Toledo.
“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. “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.”
CION President and Chief Investment Officer Gregg Bresner said his company believes the transaction will substantially reduce David’s Bridal’s debt burden. In addition, its 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, he said.
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