Bon-Ton Stores Likely Headed Toward Liquidation

Bon-Ton Stores Likely Headed Toward Liquidation

Bon-Ton Stores, owner of the Younkers department store chain, will likely liquidate and close all of its stores, according to sources familiar with the matter cited by the Reuters news service.

Now there are 8 Bon-Ton locations here including one at the McKinley Mall, who really can not afford to lose another property.

Another report, from Reorg Research, said that only two qualified bids for substantially all of Bon-Ton's assets, both of which are liquidation bids, are going forward in the auction: the joint credit bid submitted by an ad hoc group of second lien noteholders and Great American (an affiliate of second lien noteholder B. Riley Financial), and a bid submitted by the Hilco Merchant Resources and Gordon Brothers Retail Partners joint venture.

Multiple media outlets - including the Des Moines Register and KCRG in Cedar Rapids - are reporting that the pending liquidation of Younkers will lead to the closure of a number of the company's department stores in Iowa. An auction took place on Monday looking for bidders.

Shoppers make their way past The Bon-Ton at the Wyoming Valley Mall, one of two stores the chain operates in Luzerne County.

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It appears the end might be near for Younkers and other Bon-Ton Stores brands.

Money from the auction will be used to pay Bon-Ton's creditors.

According to Reuters, once the company selects a winning bidder and the proposed deal is approved by the U.S. Bankruptcy Court in Wilmington, Delaware, the liquidator can begin selling the inventory, store leases, fixtures and intellectual property.

We are hearing more and more of these stories lately about brick and mortar stores closing their doors with the convenience of online shopping.

The Bon-Ton has 260 stores in 24 states, including eight in Western New York: at the Chautauqua Mall in Lakewood, Eastern Hills Mall in Clarence, South Transit Road in Lockport, McKinley Mall in Blasdell, Olean Center Mall, Sheridan Drive in the Town of Tonawanda, Southgate Plaza in West Seneca, and the former Summit Park Mall in Wheatfield.

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