Bon-Ton Is Preparing for Bankruptcy
- Retailer said to plan court filing as soon as this weekend
- Company said earlier this week talks with creditors stalled
Bon-Ton retail store in Lancaster, Pennsylvania.
Photographer: , Tripplaar Kristoffer/SIPA/SIPPL Sipa USA
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Bon-Ton Stores Inc. is planning to file for bankruptcy protection as soon as this weekend after failing to find a last-minute buyer, according to people with knowledge of the matter.
The department-store chain has been struggling with $1.2 billion of borrowings, slumping sales and skittish vendors who scaled back shipments amid last year’s crucial holiday shopping season. After talks with creditors over a potential restructuring plan, the company said in a filing on Monday that negotiations had broken off.