- Bon-Ton Stores is discussing a possible going-concern bid with an interested party ahead of a bankruptcy auction later this month for the retailer and its assets, the company said in a press release.
- Because of the talks, the retailer extended, with court approval, the deadline for bids on the company and its assets, according to the release.
- Bon-Ton did not disclose details of talks or the identity of the prospective buyer. The company said in the release that there were “no assurances that discussions with these interested parties will lead to a definitive agreement being reached on any transaction.” In a recent court filing, Bon-Ton said it racked up a $62.9 million loss in February, a figure that included more than $32.7 million in bankruptcy expenses.
When the department store retailer filed for Chapter 11 early in February, Bon-Ton had no specific plan of exit outlined or agreed on with its lenders. Now, as it winds through the process, the possibilities for the retailer are more clear: acquisition or liquidation.
In March, a lawyer representing two stakeholders in the bankruptcy has told Retail Dive that two groups of vendors appeared to be forming to make potential bids on major pieces of Bon-Ton’s business, including as many as 175 stores. (Before filing for Chapter 11, the company operated some 260 stores under the banners…