![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Bon Ton Stores Inc (CE) | USOTC:BONTQ | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.000001 | 0.00 | 01:00:00 |
By Lillian Rizzo
Bon-Ton Stores Inc., one of the largest regional department store chains in the U.S., sought bankruptcy protection on Sunday as discussions with its debt holders have yet to come to a conclusion.
The Pennsylvania-based retailer filed for chapter 11 in U.S. Bankruptcy Court in Wilmington, Del., in a bid to deal with a crushing debt load and declining sales.
While under bankruptcy protection, Bon-Ton will explore strategic alternatives, including a sale of the company or certain assets as a part of the reorganization plan, according to a news release.
Several smaller retailers like A'Gaci LLC and Italian-owned cosmetics merchant KIKO USA Inc. filed for chapter 11 protection in January, but Bon-Ton is the largest retailer to seek bankruptcy protection so far in 2018.
Like its bigger peers -- Sears Holdings Corp., Kohl's Corp., and J.C. Penney Co. -- Bon-Ton has faced challenges as consumers have shifted from brick-and-mortar shopping to online retailers. More than 20 retailers sought chapter 11 protection in 2017, and more than 4,000 stores were closed last year, according to BDO USA data.
Bon-Ton confirmed prior WSJ Pro Bankruptcy reports when it warned of its impending bankruptcy filing as it continued talks with its lenders and bondholders. The company, which owns 260 stores, has announced it would be closing 42 of its stores across the Northeast and Midwest.
Bon-Ton hired AlixPartners LLP and PJT Partners Inc. to deal with its $987 million debt load last year. During the fall, the company said it obtained an amendment from lenders on its $880 million loan, which gave it access to more cash ahead of the crucial holiday season. The company is also working with law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP.
The company's asset-based lenders have chipped in a $725 million bankruptcy loan, pending court approval, to be used to fund operations while under chapter 11 protection. Bon-Ton plans to keep its existing stores open.
Bon-Ton's weak holiday sales did little to quell its creditors' fears. The retailer said its total sales for the nine-week November and December time frame were $720.8 million, compared with $752.1 million for the same period a year earlier.
In December, Bon-Ton's namesake department-store subsidiary missed a $14 million payment to bondholders. Last month, the company had entered into a forbearance agreement with a group of its bondholders and lenders, which expired on Jan. 26.
Bon-Ton had been looking for a private-equity investor willing to put in capital to save the company from liquidation, WSJ Pro Bankruptcy previously reported.
Bon-Ton had proposed a restructuring pact that would have swapped creditors' debt holdings into equity in a reorganized company. A group of bondholders were unwilling to move forward without an investor willing to back the plan, people familiar with the matter said.
The company has yet to find an investor, according to a news release.
"We are currently engaged in discussions with potential investors and our debtholders on a financial restructuring plan, and the actions we are taking are intended to give us additional time and financial flexibility to evaluate options for our business," Chief Executive Bill Tracy said in a news release.
Founded in 1898 and based in York, Pa., the retailer operates its stores under the names Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers.
Bon-Ton's outlets are often the only place for shoppers in many towns to find department-store brands, like Under Armour, Polo and Cavin Klein, according to a company presentation.
--Soma Biswas contributed to this article.
Write to Lillian Rizzo at Lillian.Rizzo@wsj.com
(END) Dow Jones Newswires
February 04, 2018 23:50 ET (04:50 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
1 Year Bon Ton Stores (CE) Chart |
1 Month Bon Ton Stores (CE) Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions