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Report: Department store retailer hires turnaround firm


The Bon-Ton Stores Inc.'s struggles may be catching up with it.

The department store retailer has hired AlixPartners to reduce its debt load and provide advice on a turnaround strategy, Reuters reported. Bon-Ton’s debt totaled about $850 million as of July 29, and a portion of the company’s revolving credit facility expires next year, according to the report. The chain's market capitalization is just $15 million.

Bon-Ton operates 260 stores under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers banners. Similar to other department store retailers, it has been hit with declining sales as it struggles to adapt to the new retail environment. For its most recent quarter, ended July 29, total sales declined 7%, and same-store sales fell 6.1%.

Bon-Ton said it expects to post a loss of $2.08 to $2.59 per share for 2017. It would be the company's seventh consecutive year without a profit.

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