Bon-Ton files for bankruptcy
The York, Pennsylvania-based Bon-Ton department store chain has filed for Chapter 11 bankruptcy as it sheds dozens of stores and looks to get its fiscal house in order.
Bon-Ton Stores, struggling with weak sales and saddled with debt, has filed for Chapter 11 bankruptcy protection.
The chain, which Business First reports missed a $14 million debt payment last month, has secured up to $725 million in debtor-in-possession financing to keep the company running during the restructuring process.
Bon-Ton plans to close 48 stores nationwide by May. Liquidation sales at 42 of those stores began February 1st and will continue for 10 to 12 weeks.
There are six Bon-Ton locations in Western New York. None of the stores is on the closing list and will continue to operate as usual during the bankruptcy process.
“We appreciate the ongoing dedication of our associates, whose hard work in serving our loyal customers is critical to our success and the future of our company,” said President and Chief Executive Officer Bill Tracy. “Importantly, we look forward to continuing to provide our customers with quality merchandise and an exceptional shopping experience in our stores and across e-commerce and mobile platforms as we move through this financial restructuring process.”