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Bon-Ton Is Seeing a Pullback That's Reminiscent of Toys ‘R’ Us

  • Some suppliers are said to seek payments on shorter time frame
  • Department-store chain had hired advisers for turnaround
A Bon-Ton store in Milwaukee.
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Some of Bon-Ton Stores Inc.’s suppliers are scaling back shipments and asking to be paid sooner in order to protect themselves from potential losses in case the department-store chain falls short on its turnaround plans, according to people with knowledge of the matter.

The suppliers have insisted on getting paid with letters of credit or cash on delivery, which can be a drain on the company’s resources, said the people, who asked not to be named because the matter is private. The demands come just as the chain enters the key holiday-shopping season in the U.S.