Bon-Ton receives letter of intent from potential buyer ahead of bankruptcy auction
Bon-Ton Stores, just days away from a bankruptcy auction, received a potential respite Monday, April 9, in the form of a potential buyer.
An investor group signed a letter of intent with Bon-Ton for an asset purchase agreement, according to a company news release.
The release also notes that the auction, previously scheduled for Tuesday, April 10, has been extended to Monday, April 16.
The department store chain, with dual headquarters in York County and Wisconsin, filed for Chapter 11 bankruptcy protection in February.
“We are pleased to have received this signed letter of intent and are advancing our discussions with the investor group to complete an asset purchase agreement as we proceed toward the court-supervised auction," Bon-Ton President and CEO Bill Tracy said in the release. "With the help of our advisors, we will evaluate all qualified bids and are committed to maximizing value and pursuing the best path forward for the Company and our stakeholders."
The investor group that signed the letter of intent is composed of DW Partners, Namdar Realty Group and Washington Prime Group, the release states.
Bon-Ton recently filed WARN notices with the state to close offices or stores in four Pennsylvania counties, including in York County, where 332 employees would be affected.
Under the WARN Act, employers are required to provide the state Department of Labor and Industry at least 60 days' notice before a mass layoff. The notices state that the date of layoffs is unknown, and it is possible the layoffs won't occur.