According to a Reuters report, mall owners Namdar Realty Group and Washington Prime Group Inc. are in talks to acquire Bon-Ton Stores jointly out of bankruptcy.
The bid for Bon-Ton offers a path for the retailer to survive, according to sources in the report. However, firms specializing in liquidation also plan to submit an offer for the department store retailer.
Bon-Ton, which filed for bankruptcy in February, is said to be a key tenant of both Namdar and Washington Prime malls. The report said that Namdar and Washington Prime are still working on securing funding for the deal, and may use their properties to raise debt to finance the acquisition. According to the report, Namdar owns about 130 malls in the U.S. Washington Prime owns interests in 108 properties.
The department store retailer recently extended the deadline for bids in its bankruptcy auction last week to April 4, after announcing it was in active discussions with a bidder whom it did not identify.