Bon-Ton sale-leaseback deal falls through

Deal could have saved retailer $44.9 million

The furniture department at the newly remodeled downtown Milwaukee Boston Store.

The sale-leaseback deal Bon-Ton Stores Inc. was planning for three of its out-of-state stores to save the struggling retailer $44.9 million has fallen through.

The furniture department at the newly remodeled downtown Milwaukee Boston Store.
The furniture department at the newly remodeled downtown Milwaukee Boston Store.

Bon-Ton Stores Inc., which has dual headquarters in Milwaukee and York, Pa., was planning to sell stores located in Roseville and Duluth, Minn. and Aurora, Ill., to Florida-based United Trust Fund Limited Partnership.

The agreement was terminated, prior to the due diligence period, on June 16, according to a document filed with the SEC Monday.

“Bon-Ton will continue to explore all appropriate options relating to these three stores and the remainder of its real estate portfolio,” according to the filing.

Bon-Ton spokespeople could not immediately comment on the deal.

Bon-Ton Stores operates 267 department stores in 26 states under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers brands.

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