David’s Bridal Updates Rewards Program: A Strategy to Keep Customers After Two Bankruptcies

According to The Sun, David’s Bridal is navigating through financial turmoil following its bankruptcy filing in April 2023, but the company has introduced significant changes to its rewards program to entice and retain loyal customers.

New Diamond Loyalty Program

Despite the risk of closure, David’s Bridal has enhanced its Diamond Loyalty Program, which provides exclusive discounts, perks, gifts, and a chance to win a free getaway or honeymoon for its top-tier members. Shoppers can earn “diamond points” while purchasing wedding essentials, including dresses, shoes, handbags, and accessories.

Loyalty Tiers Explained

The loyalty program consists of five tiers:

• Welcome: Starting tier.
• Glow: Achieved after earning 1,000 diamond points.
• Glitter: Attained at 2,000 points.
• Shimmer: Reached after accumulating 3,000 points.
• Shine: For 4,000 points.
• Sparkle: The top tier, requiring 5,000 points, allows members to select a free getaway funded by David’s Bridal.

Challenges in Securing a Buyer

Despite the program enhancements and efforts to revamp the business, including launching new collections and partnerships, David’s Bridal has struggled to find a buyer since its bankruptcy filing. The company’s extensive store network has been a financial burden, resulting in the layoffs of 9,000 employees earlier this year and potential store closures.

While two interested buyers have emerged, neither was willing to purchase the company’s inventory or maintain its retail locations. Reports indicate that the bids did not exceed $250,000 in cash.

Bankruptcy Proceedings

U.S. Bankruptcy Judge Christine Gravelle characterized the offers as a “limited offer,” describing the situation as “this or nothing.” This marks the second bankruptcy for David’s Bridal, which previously filed four years ago while attempting to diversify its offerings with new lines, including a Quinceañera collection, eco-friendly wedding gowns, and children’s formal wear.

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A New Chapter with Cion Investment Corp

Despite the struggles, nearly 200 David’s Bridal stores will remain open following a bankruptcy court’s approval of a sale to Cion Investment Corp. On Monday, the company announced the closure of the deal, which is seen as a pivotal turning point.

Cion’s $20 million investment is poised to revitalize the brand, providing a foundation for future growth while addressing the financial burdens of the past.

Support from Bank of America

Bank of America has also stepped in to support David’s Bridal with a $50 million revolving credit facility and a $20 million term loan. This agreement acts as a lifeline for the retailer as it faces the challenging retail landscape, with Cion’s investment providing both stability and the potential for renewal.