U.S. department store chain Bon-Ton Stores Inc. is hiring advisers to help it turn around its business and slash its debtload, as it struggles to cope with the sector’s downturn, Reuters reported yesterday. Bon-Ton has tapped advisory firm AlixPartners LLP to provide operational advice on its turnaround efforts, and is also interviewing banks to appoint an advisor to review strategic options including debt restructuring. Bon-Ton serves smaller communities in 26 states across the U.S. Northeast, Midwest and Great Plains under banners including Bon-Ton, Younkers and Bergner’s. The York, Pa.-based company has been suffering from years of losses, including a loss of $33.2 million for the quarter that ended July 29. Bon-Ton’s debt totaled about $850 million as of July 29. A portion of the company’s revolving credit facility expires next year. Bon-Ton’s market capitalization is just $15 million. Read more.
What does the future hold for retail bankruptcies? Be sure to attend ABI’s Bankruptcy 2017: Views from the Bench on October 17.
