According to The Sun, David’s Bridal is making significant changes to its rewards program as it navigates the challenges of bankruptcy. After filing for bankruptcy in April 2023, the retailer is taking steps to retain loyal customers by enhancing its Diamond Loyalty Program for members.
Enhancements to the Diamond Loyalty Program
The Diamond Loyalty Program offers exclusive benefits, including discounts, special perks, gifts, and the opportunity to win a free getaway or honeymoon upon reaching the highest membership tier. Members accumulate “diamond points” by shopping for wedding essentials such as dresses, shoes, handbags, and accessories.
The program features five tiers:
- Welcome: Initial membership level.
- Glow: Achieved after earning 1,000 diamond points.
- Glitter: Attained with 2,000 points.
- Shimmer: Requires 3,000 points.
- Shine: Reached at 4,000 points.
- Sparkle: The top tier, obtained at 5,000 points, rewards members with a FREE getaway sponsored by David’s Bridal.
Ongoing Financial Challenges
Despite efforts to rejuvenate the business with new collections and partnerships, David’s Bridal has struggled to secure a buyer since its bankruptcy filing. The company’s large store footprint has proved to be a financial burden, leading to the layoff of 9,000 employees earlier this year and the potential for further store closures.
While two potential buyers showed interest in the brand, neither was willing to purchase its inventory or maintain open stores. Reports from Reuters indicate that these bids did not exceed $250,000 in cash.
Court Approval and New Opportunities
U.S. Bankruptcy Judge Christine Gravelle highlighted the dire circumstances, calling the limited offer from investment firm Cion “this or nothing.” Previously, David’s Bridal had faced bankruptcy about four years ago and had been actively diversifying its offerings, including introducing a Quinceañera collection, eco-friendly wedding gowns, and children’s formal wear.
Recently, a bankruptcy court approved a sale to Cion Investment Corp., allowing nearly 200 David’s Bridal stores to remain operational. This deal marks a new chapter for the company, with Cion’s $20 million investment providing a fresh foundation for future growth while alleviating some of the burdens from its past financial struggles.
Support from Financial Partners
In addition to Cion’s investment, Bank of America is aiding the company with a $50 million revolving credit facility and a $20 million term loan. This financial support is crucial for David’s Bridal as it faces the uncertainties of the retail landscape, with Cion’s backing offering both stability and hope for renewal.
