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The proposed split would move the retailer’s intellectual property into Pearl and license it back. A nonbinding agreement leaves the transaction unfinished.
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Pearl’s proposed separation would shift David’s Bridal’s intellectual property into a publicly traded AI-focused business while the retailer concentrates on stores; the companies would still share data and refer customers to one another. A nonbinding letter of intent filed October 22, 2026, targets a roughly $350 million valuation and a first-half 2027 closing, with Cion proposing a $25 million anchor investment. The split would give Pearl a route to public-market financing while preserving its retail channel, but the growth case rests on company forecasts, not completed results.
Pearl would own David’s Bridal’s intellectual property and license it back to the retailer.
CEO Kelly Cook is expected to lead Pearl after closing and says the separation is intended to sharpen focus, not end the companies’ relationship.
Pearl combines personalized AI wedding planning with appointment and communications tools and a digital content network.
David’s Bridal’s intellectual property would move into a separate, publicly traded AI business under a proposed split that leaves its stores focused on retail. The company filed a nonbinding letter of intent on October 22, 2026, to separate its Pearl platform, targeting a valuation of roughly $350 million, according to CNBC.
The company expects the transaction to close in the first half of 2027. David’s Bridal CEO Kelly Cook would become Pearl’s CEO after closing. Cion Investment Corp., which bought the bridal business following its second bankruptcy, has proposed investing $25 million as an anchor investor in the separate company.
The proposed arrangement would not simply put the wedding-planning software in a new company. Pearl would own David’s Bridal’s intellectual property and license it back to the chain. The original business would concentrate on strengthening its physical retail operations, while Pearl would develop its AI-centered business.
Cook told CNBC the companies would continue sharing proprietary data and directing customers to one another for different stages of wedding planning. She described the separation as a way for each business to sharpen its focus, rather than end their working relationship. Customers would remain a connection between the two companies.
Pearl already spans more than one wedding-planning service. Its offerings combine AI tools, appointment management and media:
David’s Bridal projects Pearl’s revenue will grow by more than 100% in 2027 and exceed $85 million. It also expects an EBITDA margin above 30% in 2026—a measure of earnings before interest, taxes, depreciation and amortization. These are company forecasts, not completed annual results.
The company expects Pearl to be debt-free after closing and to generate positive free cash flow over the next two years. Cook described Pearl as already producing positive cash flow. She said going public would help attract talent and give the business more options to finance its expected growth.
The proposed separation follows a difficult period for the retailer. David’s Bridal filed for bankruptcy protection in 2018 and emerged a few months later. It filed again in 2023, citing a major business slowdown caused by the pandemic and high inflation. The subsequent sale to Cion helped it avoid a shutdown.
Cook acknowledged that history in her CNBC interview, saying those struggles helped lead to the decision to split the business. Her argument is that the restructuring produced a leaner, more focused retailer capable of supporting two distinct businesses. She characterized the proposed transaction as a move from strength.
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