Younkers is open and servicing customers through these proceedings:
As previously announced, on February 4, 2018, Bon-Ton and its subsidiaries filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The Company’s stores, e-commerce and mobile platforms under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates are open and operating as usual.
Bon-Ton said that the state warning notice was a legal requirement as the company works through an attempted sale, not a statement that Bon-Ton was folding.
Earlier this week, the Bon-Ton Stores, Inc. announced that it has received a signed letter of intent from an investor group composed of DW Partners, Namdar Realty Group (including its partner Mason Asset Management) and Washington Prime Group (the “investor group”), pursuant to which the investor group proposes to acquire the company as a going concern in a Bankruptcy Court-supervised sale process.
The company and the investor group are in the process of finalizing an asset purchase agreement in advance of an auction, which will be held on April 16, 2018.
According to the release, DW Partners is an alternative asset manager focusing on investment in credit markets across a broad range of asset types and strategies. Namdar Realty Group is a privately held commercial real estate investment and management firm that owns and operates more than 30 million square feet of commercial real estate in the United States. Washington Prime Group is a retail real estate investment trust and a recognized leader in the ownership, management, acquisition and development of retail properties.
The auction was designed to achieve the highest or otherwise best offer, and was subject to, among other things, Bankruptcy Court approval and other customary conditions. A hearing to approve a sale is expected to take place later in April.
Bon-Ton is continuing to operate as usual, as the company completes its court-supervised restructuring process. Bon-Ton was required to provide notification under certain state and federal laws of potential job losses even as it works to complete a sale of the Company as a going concern, and is hopeful the sale process will preserve jobs. The Company’s stores remain open and are continuing to serve customers.
Bon-Ton operates Boston Store, Bergner’s, Carson’s, Elder-Beerman, Herberger’s and Younkers stores, plus e-commerce and mobile selling platforms.
For further information, please visit the Bon-Ton website here.
Check back April 16 for updates on the auction process.
