The Bon-Ton Stores Inc. announced late Sunday that it has filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the U.S. Bankruptcy Code.
[caption id="attachment_122859" align="alignright" width="385"]
The Bon-Ton Stores Inc. headquarters in downtown Milwaukee.[/caption]
The Milwaukee and York, Pennsylvania-based department store company (the parent company of Boston Store) said it is “currently engaged in constructive discussions with potential investors and its debtholders regarding the terms of a financial restructuring plan.”
“Bon-Ton intends to use this court-supervised process to explore potential strategic alternatives to maximize value for the benefit of its stakeholders, which may include a sale of the company or certain of its assets as part of the plan of reorganization,” the company said.
The company said its stores, e-commerce and mobile platforms under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates are open and operating as usual.
Bon-Ton said it has received a commitment from its existing ABL lenders for up to $725 million in debtor-in-possession financing which, subject to court approval, the company says is expected to support its operations during the financial restructuring process.
Bon-Ton recently announced plans to close 47 stores this year, including nine stores in Wisconsin. The only store in the Milwaukee area that is slated to close is the Boston Store clearance store on South 27th Street in Milwaukee.
"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,” said Bill Tracy, Bon-Ton president and chief executive officer. “Bon-Ton has seven well-loved brands and associates who have remained committed to delivering excellent service to our customers for decades. During this court-supervised process, we plan to continue operating in the normal course and executing on our key initiatives to drive improved performance."