Bon-Ton Stores Inc., one of the largest regional department store chains in the U.S., sought bankruptcy protection yesterday as discussions with its debt holders have yet to come to a conclusion, MarketWatch.com reported. The Pennsylvania-based retailer filed for chapter 11 in U.S. Bankruptcy Court in Wilmington, Del., in a bid to deal with a crushing debt load and declining sales. While under bankruptcy protection, Bon-Ton will explore strategic alternatives, including a sale of the company or certain assets as a part of the reorganization plan. The company, which owns 260 stores, has announced it would be closing 42 of its stores across the Northeast and Midwest. Read more.
Occupancy issues are at the heart of many significant retail cases, as detailed in the forthcoming ABI publication Retail and Office Bankruptcy: Landlord/Tenant Rights, available for pre-order at the ABI Store.
