Bon-Ton Stores Inc. won court approval to begin using its $725 million bankruptcy loan, giving the struggling retailer some leeway to operate its stores while under chapter 11 protection, WSJ Pro Bankruptcy reported. Bankruptcy Judge Mary Walrath of the U.S. Bankruptcy Court in Wilmington, Del., yesterday signed off on the use of the bankruptcy loan provided by Bon-Ton’s prepetition lenders, which include Bank of America N.A. and Wells Fargo N.A. With the additional capital from its bankruptcy loan, Bon-Ton aims to stave off liquidation and find a buyer. The company does have plans to close stores, however. Last week Bon-Ton said it would be shuttering more than 40 of its 260 stores. 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.
