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Bloomberg: Bon-Ton might soon file for bankruptcy

Staff report

Bloomberg News is reporting that senior creditors of The Bon-Ton Stores are pushing the York County-based retailer to file for bankruptcy protection, possibly by the end of January.

Jan. 16, 2017--The Bon-Ton at York Galleria Mall. Bill Kalina photo

The news outlet cites insider sources who asked not to be identified because the information is not yet public.

Bon-Ton hasn't made a decision and is still trying to avoid filing for bankruptcy, according to the report.

Full Story:Bon-Ton Creditors May Propose Bankruptcy Within Weeks

The company was delisted from the Nasdaq stock exchange late last year after its stock price dropped below $1 per share for 30 consecutive days. It began trading on the OTCQX Best Market after the delisting.

Jan. 16, 2017--The Bon-Ton at York Galleria Mall. Bill Kalina photo

The company announced Tuesday, Jan. 16, that it had entered into an agreement with a group of creditors to keep them from exercising any legal remedies against Bon-Ton for failing to make its interest payment due last December.

The forbearance agreements will expire Jan. 26, though they can be automatically extended to Feb. 4 if both sides agree to extend, according to a company news release.