Economy

Bon-Ton Files For Bankruptcy, Plans To Reorganize

Bon-Ton Files For Bankruptcy, Plans To Reorganize

According to a company statement announcing the filing the retailer is now engaged in "constructive discussions with potential investors and its debtholders regarding the terms of a financial restructuring plan".

According to the release, the retailer plans to close 47 stores in 2018, a process that can be accelerated through bankruptcy and is aimed at bringing the company's footprint in line with its shrunken sales base. "In our view, there are many stores and locations, which are in terminal decline and where closure is the only sensible option", Saunders wrote. Given Nordstrom's higher probable upside, research analysts plainly believe Nordstrom is more favorable than The Bon-Ton Stores.

"We are now engaged in discussions with potential investors and our debtholders on a financial restructuring plan", Bon-Ton Chief Executive Bill Tracy said.

The company and its subsidiaries have filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

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An institutional investor recently raised its position in Bon-Ton Stores stock. Teton Advisors Inc. owned about 1.57% of Bon-Ton Stores worth $145,000 as of its most recent SEC filing. It is the largest retailer to do so this year.

This table compares Nordstrom and The Bon-Ton Stores' gross revenue, earnings per share (EPS) and valuation. If you are accessing this story on another website, it was stolen and reposted in violation of USA & worldwide copyright legislation.

However, given Sears' own financial problems, that retailer is unlikely to benefit from Bon-Ton closures and could even suffer in the short-term as Sears stores compete against Bon-Ton liquidation sales. In addition to Carson's, they include Bon-Ton, Bergner's, Boston Store, Elder-Beerman, Herberger's and Younkers brands in the Midwest, Great Plains and Northeast. We continue to offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings, just as we always have.