Struggling department store chain to replace CEO

There’s been a shakeup at Bon-Ton Stores.



The department store retailer announced that Kathryn Bufano, president and CEO, will leave the company when her contract expires on August 25. She will be succeeded by William Tracy, currently the retailer’s COO. He will be Bon-Ton’s fourth chief executive since 2012.



Tracy has served as COO of Bon-Ton since July 2015. He previously held various management positions at Hudson's Bay Company, including executive VP of supply chain, logistics & omnichannel fulfillment, and global sourcing. Tracy also served as COO of Fortunoff Brands LLC and Nine West Corp.



Bon-Ton Stores operates 261 stores in the Northeast, Midwest and upper Great Plains regions under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers banners. The company, which has been unprofitable for the past six years, posted a $63.4 million loss in 2016, up from a loss of $57 million the previous year.



The executive shakeup comes days after longtime Bon-Ton chairman Tim Grumbacher announced his decision to retire, effective May 13. Grumbacher, who will serve as chairman emeritus and advisor to the CEO, will be succeeded by his wife and board member, Debra K. Simon. Grumbacher is the Bon-Ton’s largest shareholder. He is also member of the family that founded the company in the late 1800s.



" Bill (Tracy) is a proven leader with more than 40 years of retail experience in the areas of operations, supply chain management and logistics for national department stores,” said Grumbacher. “We are confident that Bill will be a successful leader based on his in-depth knowledge of the retail industry, his operational expertise and his understanding of the Bon-Ton business.”



The retailer also announced that Chad Stauffer, currently a general merchandise managers, has been named executive VP, and chief merchandising officer.



Bufano was named CEO of Bon-Ton in the summer of 2014. She will remain with the company as CEO through a transition period to ensure an orderly and effective leadership transition. Prior to Bon-Ton, she served as president and chief merchandising office of Belk Inc. She also held positions at Macy’s, and Lord & Taylor.



“Bon-Ton has a long and successful history as the hometown store for consumers, and I am proud of the accomplishments we made during my tenure as CEO," she said in a statement. "I look forward to working with Bill to ensure a smooth transition, and wish Bon-Ton and the entire team the best of luck in the future.”