The Bon-Ton Stores said it has 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 in a bankruptcy court-supervised sale process.
Bon-Ton and the investor group are in the process of finalizing an asset purchase agreement in advance of an auction, which is now scheduled to be held on April 16. The company sought and received approval from its lenders to extend the date of the auction to April 16. The auction is designed to achieve the highest or otherwise best offer, and is subject to bankruptcy court approval and other customary conditions. A hearing to approve a sale is expected to take place later in April.
DW Partners is an alternative asset manager focusing on investment in credit markets across a broad range of asset types and strategies. Namdar Realty Group is a privately held commercial real estate investment and management firm that owns and operates commercial real estate in the U.S. Washington Prime Group is a retail real estate investment trust involved in the ownership, management, acquisition and development of retail properties.
Bill Tracy, president and chief executive officer, Bon-Ton, said, “We are pleased to have received this signed letter of intent and are advancing our discussions with the investor group to complete an asset purchase agreement as we proceed toward the court-supervised auction. With the help of our advisors, we will evaluate all qualified bids and are committed to maximizing value and pursuing the best path forward for the company and our stakeholders. I would like to thank our talented associates, our vendors and our other partners for their ongoing support through our court-supervised restructuring process. As always, we remain focused on serving our loyal customers with quality merchandise and an exceptional shopping experience in our stores and across e-commerce and mobile platforms.”
Bon-Ton said it is continuing to operate its store and online business, which includes 250 stores, as it completes the court-supervised restructuring process.