Bridal and special occasion retailer David’s Bridal has completed the divestiture of all of its business to asset manager CION Investment.
The sale follows the receipt of court approval at a hearing in Trenton, New Jersey, earlier this month.
Following the no-cash transaction, David’s Bridal will continue to operate up to 195 stores, preserving 7,000 jobs across the US.
CION invested $20m, which will facilitate future growth of the new business and assumed certain bankruptcy-related liabilities.
In addition, Bank of America will provide a $50m revolving credit facility and a $20m term loan facility to enhance the business’ financial flexibility.
David’s Bridal chief executive officer Jim Marcum said: “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.
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“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.
“I would like to thank our valued employees, who we call Dream Makers, for their extraordinary devotion to creating magical moments for our customers. In our 70-year history, we have dressed more than 70 million customers for the best and most memorable moments of their lives and we expect to be dressing millions more for decades to come.”
In November 2028, David’s Bridal filed for reorganisation under Chapter 11 of the United States Bankruptcy Code in the District of Delaware.
The company successfully emerged from Chapter 11 bankruptcy after completing financial restructuring in January 2019.