Bon-Ton Stores headed for liquidation
The end is in sight for The Bon-Ton Stores.
The bankrupt, 160-year-old department store chain is headed to liquidation after it received a winning bid from a joint venture, including Great American Group and Tiger Capital Group, to acquire its inventory and certain other assets. The winning bid by the liquidators was estimated to be worth $775.5 million, according to Reuters. It is subject to approval by U.S. Bankruptcy Court.
The Bon-Ton liquidation comes on the heels of the winding down of Toys “R” Us, which is currently conducting going-out-of-business sales at its U.S. stores.
Bon-Ton filed for bankruptcy in February, saddled with a heavy debt load and struggling with weak sales amid declining mall traffic and increased online competition. The retailer operates 250 stores in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates.
Last week, an investor group made up of two mall owners — Washington Prime Group and Namdar Realty Group — and alternative asset manager DW Partners joined to make a bid for Bon-Ton as a going concern. But it reportedly fell through after the court ruled Bon-Ton wouldn't be able to pay the group a $500,000 "work fee."
“While we are disappointed by this outcome and tried very hard to identify bidders interested in operating the business as a going concern, we are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve,” said Bill Tracy, president and CEO.
The company's stores, e-commerce and mobile platforms will remain open throughout the store-closing sales. Bon-Ton said it will provide more details about the liquidation plans and going out of business sales at its stores.
The bankrupt, 160-year-old department store chain is headed to liquidation after it received a winning bid from a joint venture, including Great American Group and Tiger Capital Group, to acquire its inventory and certain other assets. The winning bid by the liquidators was estimated to be worth $775.5 million, according to Reuters. It is subject to approval by U.S. Bankruptcy Court.
The Bon-Ton liquidation comes on the heels of the winding down of Toys “R” Us, which is currently conducting going-out-of-business sales at its U.S. stores.
Bon-Ton filed for bankruptcy in February, saddled with a heavy debt load and struggling with weak sales amid declining mall traffic and increased online competition. The retailer operates 250 stores in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates.
Last week, an investor group made up of two mall owners — Washington Prime Group and Namdar Realty Group — and alternative asset manager DW Partners joined to make a bid for Bon-Ton as a going concern. But it reportedly fell through after the court ruled Bon-Ton wouldn't be able to pay the group a $500,000 "work fee."
“While we are disappointed by this outcome and tried very hard to identify bidders interested in operating the business as a going concern, we are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve,” said Bill Tracy, president and CEO.
The company's stores, e-commerce and mobile platforms will remain open throughout the store-closing sales. Bon-Ton said it will provide more details about the liquidation plans and going out of business sales at its stores.