47 retail stores closing as parent company struggles with debt, slumping sales
Bon-Ton Stores Inc., which operates stores carrying names including Herberger’s, Younkers, Boston Store and others, plans to close 47 locations in 17 stores this year.
Last week, Bon-Ton filed paperwork detailing its plans and shortage of cash.
Documents exchanged between the company and debtholders put the company's cash balance at no more than $7 million as it heads into what is typically one of the slowest quarters for retailers, according to Bloomberg.
The department-store chain has struggled with debt and slumping sales. Bloomberg reported the company planned to file for bankruptcy protection.
“As part of the comprehensive turnaround plan we announced in November, we are taking the next steps in our efforts to move forward with a more productive store footprint,” said Bill Tracy, president and chief executive officer for The Bon-Ton Stores, in a statement. “We remain focused on executing our key initiatives to drive improved performance in an effort to strengthen our capital structure to support the business going forward.”
The company also announced specific stores it planned to close.
Herberger’s Clearance Center in Maplewood, Minn., a suburb of St. Paul, is the only Minnesota store on the list. No North Dakota stores are listed.
There are nine Wisconsin stores slated to close this year: Younkers stores in Superior, Wausau, Appleton, Fond Du Lac, Manitowoc and Marinette; Boston Store in Beaver Dam; Boston Store Clearance Center in Milwaukee; and Elder-Beerman in Beloit.