Bon-Ton files for Chapter 11 bankruptcy protection

The Bon-Ton Stores announced on February 4, 2018 that the company has filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code. The company added that it is currently in discussions with potential investors and its debt-holders regarding the terms of a financial restructuring plan and court-supervised process will be utilised to explore potential strategic alternatives including a sale of the company or certain of its assets.

Commenting on the development, Bill Tracy, Bon-Ton’s President and Chief Executive Officer, said in a statement: "We are currently engaged in discussions with potential investors and our debt-holders on a financial restructuring plan, and the actions we are taking are intended to give us additional time and financial flexibility to evaluate options for our business. During this court-supervised process, we plan to continue operating in the normal course and executing on our key initiatives to drive improved performance."

The company further said that stores, e-commerce and mobile platforms under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers brands are operating as usual. As previously announced, Bon-Ton intends to close 47 stores in 2018, four of which closed in January. The company has received a commitment from its existing ABL lenders for up to 725 million dollars in debtor-in-possession (DIP) financing to support the company's operations during the financial restructuring process.

Picture:Facebook/Bon-Ton