Kelly Cook Will Lead Pearl as David's Bridal Plans to Spin Off Its AI Platform

David's Bridal plans to spin off Pearl, its artificial intelligence wedding planning platform, into a stand alone publicly traded company targeting a valuation of roughly $350 million, CNBC reported exclusively on 22 October. Kelly Cook, the retailer's chief executive, is set to become CEO of Pearl once the deal closes.

The company filed a nonbinding letter of intent on Thursday and expects the transaction to close in the first half of 2027. For a brand that has been through two bankruptcy filings, it is an unusual next chapter, and one led by a woman who has openly described the hard road that got it here.

What the deal would do

Under the plan described to CNBC, Pearl would become its own company and would own David's Bridal's intellectual property, which it would then license back to the retail chain. David's Bridal would keep its focus on its stores and physical retail business.

Pearl's services include an agentic AI wedding planning platform, a proprietary tool that streamlines appointments and communications, and a digital content network with original programming. It uses the data it collects on each client to personalise its suggestions.

Cion Investment Corp., the asset manager that bought the business in 2023, has proposed to invest $25 million as an anchor investor in the new company, according to CNBC.

The numbers behind the plan

David's Bridal told CNBC it expects Pearl to post an EBITDA margin of more than 30% this year. It is projecting revenue growth of more than 100% in 2027, to more than $85 million.

The company also said Pearl is expected to be debt free after the deal closes and to have positive free cash flow over the next two years. These are company projections, not reported results, and they will be tested once Pearl has to report as a public business.

Cook framed the move as a matter of focus. "Pearl has earned the right to stand on its own because it's created more value than we've expected," she told CNBC.

A leader who talks openly about the hard chapter

Cook took over as CEO last year to help move David's Bridal from a legacy retailer to a more connected online and in store experience. The company filed for bankruptcy protection in 2018 and again in 2023, when it cited a pandemic slowdown and high inflation before selling the business to Cion to avoid a shutdown.

She did not dodge that history. "That's no secret, we've talked about that openly," she told CNBC, adding that what came out of the process was "a leaner David's, a more focused David's." She called the split "a move from strength."

That candour is worth noting. Many turnaround leaders prefer to talk only about the future. Cook tied the decision directly to what the company learned during its lowest point, which makes the strategy easier for employees, customers and investors to follow.

Why her pitch is not just about AI

The timing is not easy. CNBC noted that AI stocks have been struggling, the IPO market for consumer companies has been weak and investors are starting to lose some confidence in the AI boom.

Cook's answer is that Pearl starts with something many AI startups lack. "Most AI companies have to find a customer," she said. "We already have her." In her telling, the work is less about the technology and more about modernising a wedding planning process that, as she put it, desperately needed it.

She also said Pearl is "not AI for AI's sake," and that the two companies will keep a relationship built on reciprocity, sharing data and pointing customers to each other. Grand View Research estimates the US wedding services market will top $96 billion in 2026, according to CNBC.

What women leaders can take from it

First, a hard chapter can become a strategy. Cook did not hide the bankruptcies. She used them to explain why a leaner, more focused company could make a bold move now.

Second, lead with the customer, not the tool. Her case for Pearl rests on a customer relationship David's Bridal already has, not on the appeal of AI alone.

Third, separate what is proven from what is promised. The margin and growth figures are projections, and the deal is still subject to a nonbinding letter of intent. Leaders who are clear about that difference tend to keep trust when plans shift.

The spinoff still has to close, and Pearl will have to earn its valuation in a cautious market. For now, Kelly Cook has turned a retailer's toughest years into a plan to build two companies instead of one.