Bon-Ton files for bankruptcy; Warren store not listed to close
The Bon-Ton has filed for Chapter 11 bankruptcy.
According to a news release, Bon-Ton and its subsidiaries “filed voluntary petitions for a court-supervised financial restructuring under Chapter 11” on Feb. 4.
On Feb. 6, the court “approved authorization for Bon-Ton to access up to $725 million in debtor-in-possession financing from its existing ABL lenders. The company also received authorization to continue payment of wages, provide heath and other benefits to employees, and to pay vendors in the ordinary course for all goods and services provided on or after the Chapter 11 filing date.”
With headquarters in both Milwaukee, Wisc., and York, Pa., Bon-Ton is another in a line of retailers feeling the crunch as online retailers like Amazon continue to grow.
“Bon-Ton intends to use this court-supervised process to explore potential strategic alternatives to maximize value for the benefit of its stakeholders, which may include a sale of the company or certain of its assets as part of the plan of reorganization,” the release states.
Discussions with both debtholders and potential investors, said Bon-Ton President and Chief CEO Bill Tracy, are ongoing and “the actions we are taking are intended to give us additional time and financial flexibility to evaluate options for our business.”
In addition to brick-and-mortar stores, the company maintains e-commerce and mobile platforms for Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s, and Younkers nameplates.
A total of 47 store locations were closed earlier this year or are in the process of closing. In Pennsylvania, Bon-Ton stores in Carlisle, Dubois, Erie, Johnstown, Selinsgrove, State College, Stroudsburg, and Trexlertown were on that list.
The Warren Bon-Ton store is not listed as being one of the stores planning to close. Store closing sales began on Feb. 1 and are intended to run for approximately 10 to 12 weeks, the release states.
Requests for comment from Bon-Ton Media Relations were not returned by press time.
For more information on the restructuring, visit bontonrestructuring.com. Court filings and other documents related to the court-supervised process are available at https://cases.primeclerk.com/bonton, or by calling the company’s claims agent, Prime Clerk, at (844) 253-1001.