Bon-Ton Stores and nine affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-10248. The Company, which operates department stores, is represented by Pauline K. Morgan of Young Conaway Stargatt & Taylor. The Company announced that it is currently engaged in discussions with potential investors and debtholders regarding the terms of a financial restructuring plan.
The Company notes, “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’s 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 Stores previously announced its intentions to close 47 retail store locations in 2018. The Company has received a commitment from its existing ABL lenders for up to $725 million in debtor-in-possession financing which, subject to Court approval, is expected to support the Company’s operations during the financial restructuring process.
Bill Tracy, president and C.E.O., comments, “Bon-Ton has seven well-loved brands and associates who have remained committed to delivering excellent service to our customers for decades.”
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