The Bon-Ton Stores Goes Chapter 11

The Bon-Ton Stores, Inc. announced on February 4, 2018 that 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. The Company is currently engaged in constructive discussions with potential investors and its debtholders regarding the terms of a financial restructuring plan. Bon-Ton intends to use this court-supervised process to explore potential strategic alternatives to maximize value for the benefit of its stakeholders, which may include a sale of the Company or certain of its assets as part of the plan of reorganization. 

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 are open and operating as usual. As previously announced, the Company is closing 47 stores in 2018, four of which closed in January and one store that is near completion and 42 additional at which store closing sales began on February 1, 2018 and will run for approximately 10 to 12 weeks. A full list of those locations can be found on its investor relations website.

Additional information is available on the Company's restructuring website at bontonrestructuring.com

Help support the fashion industry and Bon-Ton by purchasing clothing.  You can shop at Bon-Ton at https://www.bonton.com/

The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 256 stores, which includes nine furniture galleries and four clearance centers, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates.  The stores 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.  The Bon-Ton Stores, Inc. is an active and positive participant in the communities it serves.  For further information, please visit http://investors.bonton.com. 

This is obviously not the only clothing retailer that has faced Chapter 11.  Many retailers and clothing brand face similar challenges.  Some fail completely but others emerge stronger.

Payless Filing Chapter 11 in 2017

Pacific Sunwear Chapter 11 in 2016

Aéropostale Chapter 11 in 2016

Quiksilver Chapter 11 Reorganization 2015

WetSeal Chapter 11 in 2015

American Apparel Filed Chapter 11 in 2015

You may also have interested in going back in time to read our The Financial Mood of the Apparel Industry 2015.  What is the financial mood of the apparel industry for 2018?  Good question.  The mood at Bon-Ton is currently a "Chapter 11 Mood".  Hopefully that turns into a "coming out the other side stronger mood".  Time will tell.