July 19, 2023

The David’s Bridal store in Sioux Falls appears to be among those that will remain open under new ownership.

A bankruptcy court approved the sale of the wedding gown retailer to New York-based Cion Investment Corp. in a no-cash transaction. The deal will keep 195 stores open. The Sioux Falls location at 4004 W. 41st St. is not on the list of nearly 50 unexpired leases that are being rejected, and an employee said the store would remain in business.

After filing for bankruptcy in April, David’s Bridal said it hoped to find a buyer that could preserve the business. That almost didn’t happen, according to a Reuters report. The other two bidders offered to buy the company’s name and intellectual property without acquiring its stores or inventory.

While Cion will not pay for the company’s assets, it will cover costs related to renewing or breaking leases at retail locations and professional fees that occurred during the bankruptcy process, according to court documents.

The deal preserves about two-thirds of the company’s locations. Stores in Sioux City and Rapid City have closed already.

David’s Bridal also filed for bankruptcy in 2018.