Bon-Ton Stores request to pay investor group work fee denied by court

By Caroline Salls

Pittsburgh, April 12 – Bon-Ton Stores, Inc.’s motion to pay a $500,000 work fee to a consortium of investors in connection with negotiation of an offer for substantially all of its assets was denied by the U.S. Bankruptcy Court for the District of Delaware, according to a certification of counsel filed Thursday.

As previously reported, the investor group is led by Namdar Realty Group, Washington Prime Group and DW Partners LP.

Bon-Ton said a letter of intent was executed on April 6.

“The transaction contemplated by the letter of intent represents a significant and potentially valuable opportunity for the debtors to consummate a sale transaction, which will maximize value for the debtors and their estates and preserve the debtors’ business as a going concern,” the motion said.

Bon-Ton, a York, Pa.-based department store operator, filed bankruptcy on Feb. 4 under Chapter 11 case number 18-10248.

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