David’s Bridal will stay in business after a court approved the bankrupt formal wear chain’s plans to sell its business to New York City-based asset manager Cion Investment Corp.
The eleventh-hour deal was approved at the July 14 hearing at the U.S. Bankruptcy Court for the District of New Jersey in Trenton by Judge Christine Gravelle. It’s expected to save more than 7,000 jobs and up to 195 locations, according to Reuters and court documents.
The no-cash sale will decrease the debt of David’s Bridal from $256.9 million to $50 million, Reuters added.
David’s Bridal filed for bankruptcy in April amid soaring debt. It began embarking on layoffs and an effort to reduce its brick-and-mortar footprint through lease auctions.
According to Reuters, Cion will keep the stores open, and pay certain debts, as well as the costs of renewing and breaking leases at retail locations, and certain fees associated with bankruptcy.
But auction proceedings were canceled July 3, according to the Philadelphia Business Journal.
It is not immediately clear how the deal would affect Delaware’s workforce. There is one David’s Bridal store in Delaware — in the Christiana Fashion Center, across from the Christiana Mall, in Christiana.
According to a state regulatory filing, David’s Bridal planned to lay off 227 workers this August. A company spokesperson couldn’t immediately be reached by email for comment.
CHRISTIANA FASHION CENTER:Bloomingdale’s Outlet coming to shopping center in place of Saks Off 5th
RETAIL:Are you shopping at Delaware’s most popular shopping centers? Here’s our 2023 list.
