Another Chain Located in Orange County Files Bankruptcy
Another store, files for Chapter 11 bankruptcy protection. Bon-Ton stores, filed last week (February 5,) as they exploring a sale of all or part of the company. Bon-ton blames weak sales and being saddled with debt. They said holiday sales were quite bad this year. According to an article published by NBC News, they have 260 stores in 24 states. Most of the stores are in the Northeast and Midwest. Locally, Bon-Ton has a store at the Newburgh Mall on Route 300 in Newburgh.
Officials say they are in the process of coming up with a restructuring plan, and have secured $725 million in debtor-in-possession financing to operate during the restructuring time period. Bon-Ton plans to focus on overhauling its private-label products, to play catch-up to other retailers like Kohl’s, Macy’s and J.C. Penny. Traditionally, clothes under the stores name, have better profit margins.
No word on if the Chapter 11 plan calls for store closures or layoffs of employees.