Charlotte area David’s Bridal shops learn their fate after company bankruptcy sale
Two Charlotte-area David’s Bridal shops have been spared from closing following the company’s bankruptcy filing this spring.
On Monday, the Pennsylvania-based bridal company finalized its sale to CION Investment Corp. for an undisclosed amount as the bankruptcy protection case continues. CION will invest $20 million into the new business, David’s Bridal said in a news release Monday.
David’s Bridal will continue operations up to 195 stores, preserving 7,000 jobs across the U.S., according to the company’s news release.
Among the stores that will remain open are two in Mecklenburg County, David’s Bridal confirmed to The Charlotte Observer on Monday.
The stores are at Northcrest Shopping Center at 9717 Northlake Centre Parkway in Charlotte and The Centrum Shopping Center at 10420-D Centrum Parkway in Pineville.
The no-cash sale will decrease David’s Bridal’s debt from $257 million to $50 million, according to Reuters. Charlotte-based Bank of America also will continue to provide financing for David’s Bridal through a $50 million revolving credit facility and a $20 million term loan, according to the news release.
David’s Bridal bankruptcy background
In April, David’s Bridal filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court District of New Jersey with $257 million in debt.
At the time of the filing, David’s Bridal had about 10,000 employees and 294 stores in the U.S., Canada and the United Kingdom, including 10 stores in North Carolina and five in South Carolina.
David’s Bridal began closing some stores following April’s bankruptcy filing, including one in Durham, as the company looked for a buyer. It was the second time in five years the women’s formal apparel retailer filed for bankruptcy protection.
More about David’s Bridal
David’s Bridal sells bridal gowns ranging in price from $199 to over $2,000, bankruptcy court documents show.
The 73-year-old company is the largest U.S. bridal store chain. The stores also are popular for prom gowns and other formal wear.
This story was originally published July 25, 2023 at 6:20 AM.