The Bon-Ton is using a 30-day grace period to delay a $14 million interest payment that was due December 15.
According to a Securities and Exchange Commission filing from The Bon-Ton, the company’s second amended revolving credit facility have confirmed that the grace period is being used, which will not impact the department store retailer’s ability to borrow under the loan.
The Bon-Ton, which operates stores under several nameplates including Bon-Ton, Bergner’s, Carson’s and Elder-Beerman, is one of many department stores to struggle during 2017.
In November the company reported that comparable store sales for the third quarter ended October 28 were down 6.6%. Sales over the same period were down 7.6%. The company also announced it would close 40 stores in 2018.