Bon-Ton appears headed for liquidation

Bon-Ton appears headed for liquidation

Bon-Ton appears headed for liquidation

Reuters, citing anonymous sources, reported late Monday that the only bids that came in during a bankruptcy auction Monday were from two groups that want to liquidate the company.

According to a report from Reuters, the only two bidders at the auction were liquidators.

But a bankruptcy court judge denied the investor group's request for an upfront payment from Bon-Ton of $500,000 to cover due diligence work on the proposed rescue plan, which led to the auction on Monday.

Bon-Ton filed for bankruptcy in February and is in the process of closing 47 stores.

The company, founded in 1898, has headquarters in York, Pennsylvania, and Milwaukee, Wisconsin.

More news: Uber buys bike-share app Jump and its dockless e-bikes

Multiple media outlets - including the Des Moines Register and KCRG in Cedar Rapids - are reporting that the pending liquidation of Younkers will lead to the closure of a number of the company's department stores in Iowa. It has operated as a subsidiary of Bon-Ton since 2006.

While Bon-Ton officials had hoped the auction would include a bidder that would keep the department store chain open, the chain will go out of business without a bid from a potential buyer interested in keeping the retailer up and running. Local Bon-Ton chains can be found in the Arnot Mall in Horseheads, The Shops at Ithaca Mall in Ithaca and the Oakdale Mall in Johnson City. Toy's R Us, with a store at West Towne and a Babies'R Us near East Towne, is going out of business while the 111,000-square-foot Sear's store at West Towne has been downsized to 56,000-square-feet. Both have served as anchor stores for the mall.

More than $1 million was spent on fixtures for Younkers' Southbridge Mall store, which employed 70 people in 59 departments when it opened.

"They're going to want to do something to attract those (lost Boston Store) customers", O'Brien said.

Related news