Bon-Ton expected to close 5 stores by the end of the year

By

Rebecca Taras

Published
Aug 22, 2017

Due to a second-quarter net loss of $33.2 million, The Bon-Ton Stores Inc. (comprised of Bon-Ton, Carson’s, Younkers, Herberger’s, Elder-Beerman, Boston Store and Bergner’s brands) made the decision to close approximately five locations from its 260 store roster by the end of 2017.

While this is certainly not good news for the struggling retailer, the Q2 results were still a slight improvement from Q1 when the company reported a loss of $38.7 million. "We made progress in several important areas of the business during the second quarter,” William Tracy, incoming president, and CEO said. “We saw strength in key merchandise categories and brands and were pleased with the continued double-digit growth in our omnichannel business.”

Tracy also claims that Bon-Ton is in a more favorable position than Macy’s in that they have been expanding their merchandise lineup to include a unique “close to home” program featuring locally sourced products. It’s also beefing up its cosmetics department, an area that is oftentimes considered the bread and butter of department store retail.

Despite this positive statement, the company is saddled with debt and only technically owns only about 25 of its stores. Retail analysts speculate that Bon-Ton may eventually have to file for Chapter 11 bankruptcy, though the department store chain is still implementing initiatives to monetize its assets.