Morning all,

The end of Bon-Ton may be playing out in U.S. Bankruptcy Court in Wilmington.

It appears that   liquidation companies are the top  bidders  for stores that were a shopping mainstay in many  Pennsylvania cities.

The move could be fought by some creditors, but Bon-Ton is in a bankruptcy court venue known for efficiently handling cases of mid-sized companies that fall on hard times. 

One outside possibility is that some of the stores and names might be sold off and survive under liquidation if put under new ownership that focuses on local ties. Younkers, for example, is a household name in Iowa and a case could be made for a smattering of Bon-Tons.

Bon-Ton never made its way to Delaware or we might be seeing store closings here. Instead, Keystone State rival Boscov ’s opened three stores in the First State.

Boscov’s had its own near-death experience when it over-expanded as the nation was buffeted by the financial crisis of  2008 and 2009.  The late Albert Boscov basically saved the company and remained a towering figure at the stores until his death early last year.

Boscov’s now has about four dozen stores and might pick up a few Bon-Ton locations at the right price.

Bon-Ton meanwhile saw size as the key to its survival and acquired for a hefty  $1 billion   a division of  Saks with  brands that included Carson’s, Boston Store, Herberger’s and Younkers. Locations spanned a vast area stretching from the Midwest to the Mountain West.

Financial troubles deepened of late for the  200-store  Bon-Ton, which had headquarters operations in Milwaukee and York, PA. Its debt load, online retailers and focused brick and mortar competitors appeared to seal its fate. 

A group that included mall owners apparently looked at keeping Bon-Ton intact, but apparently did not submit a bid in Delaware.

Their fear was that the loss of  stores, especially smaller cities,  would lead to  “ghost malls.”

With Sears on the ropes and Penney’s and Macy’s struggling, those concerns are valid.

Here’s to a little more sunshine today. The newsletter returns tomorrow. – Doug Rainey, publisher