Economy

Bon-Ton Heads to Liquidation

Bon-Ton Heads to Liquidation

Bon-Ton has stores in the Eastern Hills Mall, McKinley Mall, Chautauqua Mall, Olean Center Mall and the former Summit Mall, as well as in West Seneca, the Town of Tonawanda and Lockport.

Bon-Ton Stores Inc, could be going out of business after the only bidders competing at the Monday start of its court-supervised auction were liquidators, according to Reuters. Bon-Ton is a major tenant of both landlords and its survival would have helped protect the value of their malls.

But when the bidding opened, reports indicate the only firms offering bids were liquidators.

A spokesman for Bon-Ton did not immediately respond to messages from The World-Herald on Tuesday morning. The chain, which has dual headquarters in York County and Milwaukee, filed for bankruptcy in February.

The group signed a letter of intent to purchase Bon-Ton at the bankruptcy auction, outlining the terms of a deal that would have kept the current management team in place and the business operating.

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One liquidator group estimated their initial bid was worth about $650 million, according to a creditor representative who spoke to Reuters.

It appears the end might be near for Younkers and other Bon-Ton Stores brands.

However, Reuters also reported that the auction was still in progress late Monday night.

Other stores operated by Bon-Ton are under the Bon-Ton, Bergner's, Carson's, Elder- Beerman and Herberger's names, but most of its stores have histories that predate the parent company.

We are hearing more and more of these stories lately about brick and mortar stores closing their doors with the convenience of online shopping.