Bon-Ton reported that it will reduce corporate and store personnel by approximately 1,150 positions, eliminate 2008 bonus for senior executives and eliminate 2009 merit-based wage increases across the entire company, among other actions, in order to reduce costs.
The one-time costs associated with these reductions, including severance, are estimated to be $3 million. Additionally, as part of the strategic analysis and year-end close, the company is reviewing the value of its intangible, long-lived and tax assets. Based upon applicable accounting rules and other factors, which take into account the difficult macroeconomic environment, the company expects it will record a material non-cash charge to reduce the reported value of these assets. The impact of this non-cash charge will be quantified during the year-end closing process.
