Bon-Ton Creditors May Propose Bankruptcy Within Weeks
- Department-store chain posted holiday-sales decline this week
- One option is to combine parts of retailer with other company
A Bon-Ton retail store in Lancaster, Pennsylvania.
Photographer: Tripplaar Kristoffer/SIPPL Sipa USA
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Senior creditors of Bon-Ton Stores Inc. are pushing the troubled retailer to file for bankruptcy, a development that could happen as soon as this month, according to people familiar with the matter.
Bon-Ton, however, hasn’t made a decision and is still trying to avoid a court filing, said the people, who asked not to be identified because the information isn’t public. If the company does enter bankruptcy, it’s not clear whether it would seek to liquidate or to reorganize, the people said.