Bon-Ton hires Alix Partners to advise on turnaround plans

U.S. department store operator Bon-Ton has hired consulting firm AlixPartners to provide operational advice regarding its turnaround efforts. Meanwhile, PJT, a restructuring advisory firm, looks into the refinancing of the company’s debts.

After global investment bank PJT drafted the preliminary plan for Bon-Ton to focus on refinancing its debt and preparing for a potential bankruptcy, the department store chain has now brought on board AlixPartners to spearhead efforts to revamp its operations.

‘The Wall Street Journal’, citing identified sources, reported earlier this summer that Bon-Ton had hired the restructuring firm PJT Partners to consider how the retailer could refinance debt and prepare for a possible bankruptcy filing.

It’s worth recalling that some of the company’s revolving credit facility expires next year. At the end of Q2 2017, Bon-Ton reportedly had 856 million dollars in long-term debt, while holding 6 million dollars in cash, reports ‘Consultancy UK’. Its net debt is understood to near 850 million dollars. Current Bon-Ton’s market capitalization stands at 15 million dollars.

Facing a quite possible bankruptcy, the company has expedited some management and operational changes, naming a new CEO in September.

Additionally, the company is applying stringent cost-cutting measures, shifting as much sales as possible to the digital channel and bidding strongly on products made in the local communities surrounding its stores in a program called “Close to Home.”

One of the largest regional department store chains in the U.S., Bon-Ton operates almost 260 stores across the Northeast and Midwest under the names Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers.