Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos
Specialist Retailers
Apparels, Accessories & Luxury Goods Retailers
Return to: RBR Home | Specialist Retailers | Apparels, Accessories & Luxury Goods Retailers

Two liquidation companies win auction for Bon-Ton Stores

RBR Staff Writer Published 18 April 2018

The Bon-Ton Stores is preparing to close its business after two liquidation companies, Great American Group and Tiger Capital Group, won a bankruptcy auction.

A joint venture composed of the holders of  Bon-Ton Stores' 8.0% Second Lien Secured Notes due 2021 and Great American Group, and Tiger Capital Group, will acquire the inventory and certain other assets of the company. 

The liquidation is expected to be completed within 10 to 12 weeks.

Throughout the court-supervised asset sale process, the company's stores, e-commerce and mobile platforms under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates will remain open in the store closing sales.

The company stated that it will reveal further details about the liquidation plans and going out of business at its stores, once the Bankruptcy Court approves the winning bid.

Bon-Ton Stores president and CEO Bill Tracy said: "While we are disappointed by this outcome and tried very hard to identify bidders interested in operating the business as a going concern, we are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve.

“We are incredibly grateful to all of our associates for their dedicated service to Bon-Ton and to our millions of loyal customers who we have had the pleasure to serve as their hometown store for more than 160 years."

Bon-Ton filed for Chapter 11 bankruptcy protection in early February this year and at that time, the company stated that it was on the lookout for a new buyer or investor.

One of Bon-Ton’s consultants is said to have contacted 28 potential investors early this year to restructure the company or to sell it.

More recently, the company also received a letter of intent and not a formal bid from an investor group of two mall owners and a New York investment firm including Namdar Realty Group, Washington Prime Group and hedge fund DW Partners.

But the potential bid suffered a setback as the US Bankruptcy Court judge handling the case said Bon-Ton couldn’t pay $500,000 in due diligence and other fees for the mall owners and investment firm, Journal Sentinel reported.

Image: Bon-Ton stores to be closed within 10 -12 weeks. Photo: Courtesy of The Bon-Ton Stores, Inc.