WEDDING store David’s Bridal has made changes to its rewards program as it struggles through bankruptcy.
Despite being at risk of shutting down after entering bankruptcy in April 2023, bosses have added even more deals for loyal customers, known as Diamond Members.
David’s Bridal sells everything from wedding dresses to accessories and decorations[/caption]
The Diamond Loyalty Program offers exclusive discounts, perks, gifts and even the chance to win a free getaway or honeymoon when you hit the top tier.
Members earn “diamond points” as they shop for things like wedding dresses, shoes, handbags, hair accessories and other bridal essentials.
The first tier is called Welcome. Once you hit 1,000 “diamond points”, you earn Glow status.
The third tier is Glitter after 2,000 points, the fourth is shimmer at 3,000 and Shine is the fifth at 4,000 points.
The final and top tier is Sparkle, which you can reach at 5,000 “diamond points”. When you reach Sparkle, you can pick a FREE getaway funded by David’s Bridal.
Despite efforts to revamp its business, including introducing new collections and partnerships, the retailer has been unable to find a buyer since filing for bankruptcy in April.
It’s large number of stores has been a major financial burden, leading to layoffs of 9,000 workers earlier this year and potential store closures.
Although two potential buyers expressed interest in the company’s brand, neither was willing to purchase its inventory or keep stores open.
According to a Reuters report, neither bid offered more than $250,000 in cash.
U.S. Bankruptcy Judge Christine Gravelle summed up the situation, calling a limited offer from investment firm Cion “this or nothing.”
David’s Bridal had previously experienced bankruptcy around four years ago and had been working to diversify its offerings.
The retailer introduced a Quinceañera collection, eco-friendly wedding gowns, and children’s formal wear.
However, the pandemic severely disrupted its business as many weddings were postponed or held virtually.
Nearly 200 David’s Bridal stores will keep their doors open, as a new chapter has been started by a bankruptcy court’s approval of its sale to Cion Investment Corp.
On Monday, David’s Bridal shared news of this turning point, announcing the deal’s closure.
Cion’s $20 million investment breathes new life into the company, offering a foundation for future growth while shouldering the weight of past financial struggles.
Bank of America is also extending a helping hand by supporting the business with a $50 million revolving credit facility and a $20 million term loan.
This agreement serves as a lifeline for David’s Bridal as it navigates the uncertain terrain of retail, with Cion’s investment offering stability and the promise of renewal.
