Bon-Ton reportedly set to file for bankruptcy
The Bon-Ton Stores has inched closer to filing for bankruptcy protection.
The struggling department-store retailer is has secured a loan that will allow it to file for Chapter 11 protection as soon as Feb. 4, Reuters and the Chicago Tribune reported on Friday. The reports come on the heels of the chain announcing it would close 42 stores (out of a total of about 260) across its various banners, which include Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers.
Bon-Ton recently filed a two-year, four-part turnaround plan with the Securities and Exchange Commission in which it said its restructuring could occur through an out-of-court transaction or through a Chapter 11 filing. The company, which is burdened with about $1.1 billion in debt, has been unprofitable for the past six years. It recently entered into a forbearance agreement after missing a deadline for a $14 million debt payment.
Bon-Ton is running low on cash, according to the Chicago Tribune. The documents exchanged between the company and debt holders put the company's cash balance at no more than $7 million as it heads into one of the slowest quarters for most retailers.
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The struggling department-store retailer is has secured a loan that will allow it to file for Chapter 11 protection as soon as Feb. 4, Reuters and the Chicago Tribune reported on Friday. The reports come on the heels of the chain announcing it would close 42 stores (out of a total of about 260) across its various banners, which include Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers.
Bon-Ton recently filed a two-year, four-part turnaround plan with the Securities and Exchange Commission in which it said its restructuring could occur through an out-of-court transaction or through a Chapter 11 filing. The company, which is burdened with about $1.1 billion in debt, has been unprofitable for the past six years. It recently entered into a forbearance agreement after missing a deadline for a $14 million debt payment.
Bon-Ton is running low on cash, according to the Chicago Tribune. The documents exchanged between the company and debt holders put the company's cash balance at no more than $7 million as it heads into one of the slowest quarters for most retailers.
Click here read more.