Despite recent talks with several mall owners to acquire the company, Bon-Ton will now liquidate its operations.
With its acquisition by holders of the company’s 8% second lien secured notes due 2021, Great American Group and Tiger Capital Group, the Bon-Ton Stores plans to begin winding down its operations. The acquiring group placed the winning bid in an auction for the company’s assets held pursuant to Section 363 of the United States Bankruptcy Code.
A hearing by the bankruptcy court to approve the sale and wind-down of the company’s operations is scheduled for today, April 18.
Throughout a court-supervised asset sale, 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 banners will remain open as they conduct store closing sales. Bon-Ton intends to provide more details about liquidation plans and going out of business sales following bankruptcy court approval of the winning bid.
On February 4, Bon-Ton and its subsidiaries filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the Bankruptcy Code. Recently, Bon-Ton Stores had received a signed letter of intent from an investor group composed of DW Partners, Namdar Realty Group including its partner Mason Asset Management, and Washington Prime Group to acquire the department store retailer as a going concern but the deal fell through.
Bill Tracy, Bon-Ton president and CEO, said, “While we are disappointed by this outcome and tried very hard to identify bidders interested in operating the business as a going concern, we are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve. We are incredibly grateful to all of our associates for their dedicated service to Bon-Ton and to our millions of loyal customers who we have had the pleasure to serve as their hometown store for more than 160 years.”