collected by :John Locas
The 1st large retail bankruptcy of 2018 has arrived.
Bon-Ton Stores (bont) told late Sunday it had voluntarily sought Chapter eleven bankruptcy prevention in Fed court of law in Delaware & probably purvey itself as the chain looks to become viable another time in a tough environment for section stores.
Bankruptcy prevention too makes it easier for a retailer to break leases & further quickly shrink store count.
In 2017, multi large store chains too sought court of law prevention to mend their finances, involving Toys ‘R’ America & Hhgregg.
Bon-Ton told it had lined up $725 mn in debtor-in-possession financing to save its operations going When its status wends its method out of bankruptcy court.
Department store chain Bon-Ton files for bankruptcy protection
Bon-Ton Stores has filed for Chapter eleven bankruptcy protection, the largest retailer to do very this year.
Bon-Ton told Sunday it received a commitment of as much as $725 mn in financing from existing lenders to backing its operations.
“We are currently engaged in discussions by possibility Businessmen & our debtholders on a financial restructuring plan,” Tracy said.
While under bankruptcy protection, Bon-Ton told it going to too probe strategic alternatives, involving a discound of the Corporation or assets as a fraction of the reorganization plan.
More than twenty retailers, involving Toys R Us, Hhgregg, Gymboree & RadioShack, filed for bankruptcy prevention in 2017.
Bon-Ton Stores files for Chapter eleven bankruptcy protection
As it stated in NEW YORK — Bon-Ton Stores, saddled with debt & struggling with weak discounds as shoppers abandon traditional section stores, told it filed Sunday for Chapter eleven bankruptcy prevention & was probing a discound of all or fraction of the company.
The chain, that operates 260 stores in 24 states, largely in the Northeast & Midwest, made the filing in the unite states Bankruptcy court of law for Delaware.
A Bon-Ton store in Lancaster, Pennsylvania.
Last October, Bon-Ton had released FAO Schwarz shops in about 190 of its stores, 2 years after the iconic toy chain shut down.
Like many section stores, Bon-Ton, with headquarters in York, Pennsylvania, & in Milwaukee, has been chock difficult with shoppers’ increasing preference for buying on-line & their shift from buying clothing toward having experiences.