Bon-Ton Stores announces winning bid, court approves; operations will be wound down

By Caroline Salls

Pittsburgh, April 18 – The Bon-Ton Stores, Inc. announced Tuesday that a joint venture comprised of the holders of its 8% second-lien secured notes due 2021 and Great American Group, LLC and Tiger Capital Group, LLC submitted the winning bid in an auction for the company’s assets.

According to a news release, the joint venture will acquire the inventory and some other assets of the company.

Later on Wednesday, the winning bid was approved at a hearing by the U.S. Bankruptcy Court for the District of Delaware, according to a news release.

The hearing also approved the sale and wind-down of Bon-Ton’s operations.

A purchase agreement filed with the court shows that the purchase price includes a debtor-in-possession financing payoff amount, cash collateralization of letters of credit, funding of a $15.8 million carve-out, $3 million of liquidity for outstanding checks, a $125 million notes claim credit bid, up to $93.8 million in wind-down funding and a $50 million wind-down expense advance.

The joint venture will also assume specified claims as part of the purchase price.

“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 winddown of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve,” Bon-Ton president and chief executive officer Bill Tracy said in the release.

The company said its 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 throughout the store-closing sales.

Bon-Ton said it expects to provide more details about the liquidation plans and going-out-of-business sales at its stores following approval of the winning bid.

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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