Report: Bon-Ton suppliers start to pull back shipments
Despite its turnaround plans to improve sales, Bon-Ton Stores is facing obstacles among its suppliers.
The department store chain’s suppliers are scaling back shipments and asking to be paid sooner. Suppliers expect these measures to protect them if the department-store chain falls short on its turnaround plans, according to Bloomberg.
Bon-Ton has been working with its vendors to build inventory ahead of the holiday season. Yet, companies are still insisting that they get paid with letters of credit or cash on delivery — an issue that could strain the company’s resources, the report said.
Despite the struggle, Bon-Ton continues to move forward with plans to unload more than $1 billion in debt. One initiative is an $18.9 million sale-and-leaseback transaction for a store in Roseville, Minnesota. This plan is expected to boost liquidity in the short-term and buy the company some breathing room, Bloomberg said.
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The department store chain’s suppliers are scaling back shipments and asking to be paid sooner. Suppliers expect these measures to protect them if the department-store chain falls short on its turnaround plans, according to Bloomberg.
Bon-Ton has been working with its vendors to build inventory ahead of the holiday season. Yet, companies are still insisting that they get paid with letters of credit or cash on delivery — an issue that could strain the company’s resources, the report said.
Despite the struggle, Bon-Ton continues to move forward with plans to unload more than $1 billion in debt. One initiative is an $18.9 million sale-and-leaseback transaction for a store in Roseville, Minnesota. This plan is expected to boost liquidity in the short-term and buy the company some breathing room, Bloomberg said.
To read more, click here.