While Indiana’s Bon Ton is off the chopping block, their parent company’s financial troubles continue.
On Sunday, Bon Ton Stores filed for Chapter 11 Bankruptcy protection. Reports say they received a commitment of as much as $725 million in debtor-in-possession financing from existing asset-backed lenders to support their operations. They will continue to operate as normal, but also explore other strategic alternatives, which include a sale of the company or certain assets as part of their reorganization plans. The process may make things easier for Bon Ton to renegotiate existing leases or ask for rent reductions.
Last week, Bon Ton Stores announced the closure of 40 stores across the nation. The list did not include the Indiana Mall location, and the nearest closures were in Johnstown and Dubois. The corporate offices are in York, PA and Milwaukee, Wisconsin and aside from The Bon Ton brand, they also operate The Boston Store, Younkers, Bergner’s, Carson’s, Elder-Beerman and Herberger’s.
[xyz-ihs snippet=”ST-Bank-Debt-Consolidation”]
