David’s Bridal avoids shutdown with no-cash bankruptcy sale

Wedding gown retailer David’s Bridal has been approved by a U.S. bankruptcy judge to sell its business to asset manager Cion Investment Corp in a no-cash transaction, allowing the company to avoid a total shutdown and keep 195 stores open. The sale will also help David’s Bridal reduce its overall debt from $256.9 million to around $50 million and preserve the jobs of 7,000 out of 10,000 employees. The company, which filed for bankruptcy in April, faced decreased demand for wedding dresses and financial challenges worsened by the COVID-19 pandemic and inflation.