A future of a chain of department stores operating under various names will play out in U.S. Bankruptcy Court in Wilmington.
The Bon-Ton Stores, Inc. announced that it has received a signed letter of intent from an investor group to buy its stores. The company has headquarters operations in York, PA, and Milwaukee.
The company has Bon Ton stores in Pennsylvania and operates stores in the Midwest and mountain west under a number of names.
The group is comprised of an asset manager and firms that own commercial centers including retail properties.
A Bankruptcy Court auction has been rescheduled for April 16 after being slated for this week.
Bon-Ton sought and received approval from its lenders to extend the date of the auction to April 16, 2018.
The auction is designed to achieve the highest or otherwise best offer, and is subject to Bankruptcy Court approval and other customary conditions. A hearing to approve a sale is expected to take place later in April.
The company’s stores operate under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers names.
The company earlier announced the closing of 42 stores of the nearly 270 it operated.The company has more than 20,000 employees.
The brands were acquired in a wave of mergers in the troubled department store industry. The company has struggled to compete against Kohl’s and other retail chains.